Chittagong Port Authority (CPA) has sought the central bank's intervention in encashment of Tk 13.54 billion stuck-up fixed deposit receipts (FDR) to help address its liquidity problem, sources said.
According to the CPA, such a significant amount of its fund remained stuck up with different banks and a state-owned financial institution-ICB for a long time causing immense problems for implementing its various important ongoing development projects, they added.
To this effect, the CPA has written recently to the Bangladesh Bank (BB) on the issue.
More than Tk 4.21 billion remains idle with the private run Union Bank followed by Tk 2.15 with Social Islami Bank, Tk 1.91 billion at First Security Islamic Bank, Tk 1.79 with Padma Bank, Tk 1.37 billion at state-owned BASIC Bank, Tk 1.15 billion with Global Islami Bank and Tk 250 million at the National Bank PLC.
Besides, Tk 724.9 million has been stuck up with the Investment Corporation of Bangladesh.
Fund, pension fund and provident fund of the CPA are invested in the norm of FDRs at various times in the different banks concerned.
At present, due to the financial distress, irregularities and liquidity crisis of the mentioned banks being regularly published in the media and newspapers, for this, the FDRs of CPA in the mentioned banks are appearing as risky, according to the letter.
Due to the lack of financial capacity of the banks, the CPA has been requesting repeatedly through letters to encash the FDRs, but it is not possible to collect it from the respective banks, it said.
As a result, the ongoing important development projects to increase the capacity of CPA, including the financial expenditure, is becoming challenging for implementation.
Besides, the CPA has been facing losses financially and the government is depriving of revenue, the letter reads.
Previously, the CPA communicated several times with the Padma Bank, National Bank, BASIC Bank, Global Islami Bank, and the Investment Corporation of Bangladesh to take necessary measures for encashment of its all FDRs. but no action was taken by them, a source said.
In August 27, 2024, the CPA sat in a meeting with representatives from the respective banks on encashment of all such fund at board rood of the authority with port chairman Rear Admiral SM Moniruzzaman in the chair requested to encash the FDRs soon.
But, the banks said that it is not possible to monetize the deposit of CPA due to various reasons, including the ongoing situation, changing in the board of directors of the banks.
However, the assures that it would be possible to pay the deposits step by step subject to the development of liquidity crisis in the next few months, according to the meeting document.
Another source said most of the banks had tied with to controversial S Alam Group and a person named Chowdhury Nafeez Sharafat.
After the resignation of Sheikh Hasina's government, the central bank could remove the group and the person from the financial institutions.
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