The non-performing loans soared to approximately Tk1.35 trillion (131,621 crore) by March 31, 2023---9.0 per cent higher on the amount three months ago, and 16 per cent higher on that of the corresponding period a year ago, according to the Bangladesh Bank. Compared with the country's budget of Tk7.61 trillion for the fiscal year 2023-24, the soured loans are 17.73 per cent---just a little less than one-fifth of the total national budget. In this connection the bitter pill of strict conditionality Bangladesh had to swallow in order to receive the $4.7 billion IMF loan amounting to a little over Tk500 billion brings the policymakers face to face with an ugly truth. The truth is that fiscal mismanagement, lax regulatory definitions, and reporting standards and weak supervisory enforcement---in short absence of good corporate governance--- have brought the country to this quagmire.
This is mind-boggling. How can a small country like Bangladesh afford such large-scale economic haemorrhage? The loan defaulters, moreover, default on loan repayment wilfully and the crime does not end there. More often than not they have laundered money out of the country or otherwise diverted the money to unapproved channels. What is particularly concerning is that the capital flight has involved foreign currency, mainly the greenback, that is directly linked to the country's dollar crisis. If a substantial part of the conservatively estimated NPL amount of Tk 1.35 trillion ---it is likely to be a larger sum --- contributed to the capital flight, it has not helped the causes of banks and the country in dealing with the greenback crisis. Internal resources would not be under strong pressures to look for loans with shoestrings attached.
The large amounts of money with which the loan-defaulting sharks hire top lawyers to fight for their indefensible loan positions are tens of thousand times higher than a loan made by a poor farmer. The latter do not have anyone to defend them in the court. This is how the underprivileged and little or not at all educated segments of the population are discriminated against whereas the suited and booted intriguers in the garb of so-called civilised gentry is making a mockery of the law of the land. Not only do they get away with their crooked and debased ploys, they are also at times allowed to flee the country to happy havens abroad. Thus a country's apparent prosperity is bound to be deceptive. Wealth accumulation hardly ever takes place in a fair and honest manner. Business ethics and moral considerations become a sure casualty.
Thus farmers who produce foods for the nation by the sweat of their brows are left neglected and even subjected to ill treatment when the more equal known for avarice and fleecing the common people enjoy elevated social status for their ill-gotten wealth and stolen money from banks in the name of classified loans. The legacy of acquiring fabulous amounts of wealth in modern times is embedded in innovative businesses and smart technologies making unprecedented breakthroughs with far-reaching impacts on human civilisation. Steve Jobs, Bill Gates and Paul Allen are the icons who have inspired millions of youths the world over to go for innovation and also earn pots of money honestly.
That legacy is most precious. Unfortunately, the predominant legacy left by the loan defaulters, money launderers, bribe takers and fraudsters in every area of economic activities stinks of cheating and corruption. The handful of honest and morally upright people pursuing their business in such an unhealthy environment can hardly inspire the young generation. No wonder, the highly talented feel comfortable to be dissociated with the rotten system and look for avenues to get out of the country and settle abroad. When dishonest and debased people with limitless money at their disposal rule the roost and the system supports these vile and vicious socio-economic conditions, the talented youths cannot be blamed for not developing a deep patriotic feeling they were supposed to do.
Loan defaulters and the like-minded people are taking even a small band of honest politicians, let alone simple and innocent people, for a ride. The nasty image overwhelms the country's traditional values, principles and ideals. It is time the nation stood united against this pervasive moral decay in all areas of life here. But legal provisions have to be reset for those to be equal to the task.
nilratanhalder2000@yahoo.com