TDS Desk:

In response to various external economic challenges, Bangladesh Bank has formed a five-member selection committee to provide policy support for restructuring the businesses and financial operations of affected borrowers.

Officials said the initiative aims to stabilise the banking sector and sustain economic activities amid ongoing global and domestic uncertainties.

The committee consists of representatives from Bangladesh Bank, the Ministry of Finance, and the private sector.

The committee is convened with Mezbah Ul Haque, Executive Director of the Off-site Supervision Department at Bangladesh Bank, with Dr Delwar Hossain, Joint Secretary of the Financial Institutions Division; Mamun Rashid, Economist; and Abdul Haque, Business Representative from Haq’s Bay, as members, while Shahriar, Director of the Banking Regulation and Policy Department, serves as the Member Secretary.

Many businesses in Bangladesh have suffered financial setbacks due to factors beyond control, including the COVID-19 pandemic, the Russia-Ukraine war, global economic downturn, floods and political disruptions.

To mitigate the impact and ensure loan recovery, the newly established committee will recommend necessary policy measures to rehabilitate affected businesses, ensuring their viability and profitability, according to the officials.

The selection committee will assess whether borrowers have genuinely suffered due to uncontrollable circumstances. Furthermore, it will evaluate the feasibility of restructuring distressed businesses through policy assistance, enabling them to regain operational efficiency and repay their loans.

Spokesperson Husne Ara Shikha confirmed that there is no fixed time limit for the committee’s task completion. However, members can receive remuneration for up to two meetings per month, she said.

Shikha said the committee’s scope includes loans amounting to Tk 50 crore or more that have been classified due to external economic factors. Its recommendations will focus on policy-driven solutions to restore business sustainability and enhance financial stability in the banking sector.