Banks start scrutinising default loans of candidates
Tuesday, 2 December 2008
FE Report
Commercial banks and financial institutions have started scrutinising default loan positions of candidates aspiring to contest the parliamentary polls scheduled on December 29, bank officials said.
"We're now examining the default loans of the aspirants and have collected their names from the election officials across the country," a senior official of the Sonali Bank Limited told the FE Monday.
He also said the bank has already asked the officials concerned for taking necessary preparations to file complaints against loan defaulters within a couple of days to the returning officials concerned.
The Bangladesh Bank (BB) has already instructed the banks and non-banking financial institutions (NBFIs) to ensure presence of their executives in case of any hearing on the loan default cases, officials said.
"Minimum 10 aspirants including three influential political leaders have already obtained stay orders from the High Courts about their classified loans," the Sonali Bank official confirmed.
Some 2,460 aspirants have submitted nominations to run the race for 300 seats of parliament in the general election, according to the Election Commission (EC).
The deadline for nomination submission for the ninth parliamentary polls was Sunday under the latest schedule. The returning officers will scrutinise the papers on December 3 and 4 and candidatures have to be withdrawn by December 11. The central bank and the EC earlier asked the commercial banks and NBFIs to keep the branches and the loan recovery divisions at the head offices and the credit information bureau (CIB) of the Bangladesh Bank open from 9:00 am to 9:00 pm until December 4.
The BB has already sought information about the loan status until November 30 from the commercial banks and NBFIs to update its list of defaulters.
Under the amended Representation of the People Order (RPO), any person willing to contest the elections requires paying his or her default loan and utility bills seven days before the submission of nomination papers.
The EC earlier asked the commercial banks and NBFIs to update their information about the loan defaulters who might run for seats in the parliament.
As part of the move, the EC had sent a list of elected MPs from 1973 to 2001 to the banks and NBFIs for preparing a list of possible loan-defaulters who are likely to be candidates for the coming parliament and upazila elections.
UNB adds, Bangladesh Bank Governor Dr Salehuddin Ahmed Monday said he has instructed the commercial banks to use all possible means to realize the default loans ahead of the elections.
"We're always telling the bankers to realize the classified loans. It's their concern," he told a stipend distribution ceremony of Shahjalal Islami Bank Foundation at the Bangladesh China Friendship Conference Centre. Speaking about awarding nomination to the loan defaulters, the Governor advised the bankers to appeal in the upper courts against the loan-defaulting candidates who submitted nomination papers after obtaining stay orders from the courts.
"Use the opportunities to realize the classified loans through whatever means you can," the Governor told the bankers.
He also informed that the central bank would modernize its credit information bureau (CIB) to ensure latest information on defaulters as and when necessary.
Bangladesh Bank, he said, will send the defaulters' list to the Election Commission after the EC sends the list of candidates to the central bank.
Commercial banks and financial institutions have started scrutinising default loan positions of candidates aspiring to contest the parliamentary polls scheduled on December 29, bank officials said.
"We're now examining the default loans of the aspirants and have collected their names from the election officials across the country," a senior official of the Sonali Bank Limited told the FE Monday.
He also said the bank has already asked the officials concerned for taking necessary preparations to file complaints against loan defaulters within a couple of days to the returning officials concerned.
The Bangladesh Bank (BB) has already instructed the banks and non-banking financial institutions (NBFIs) to ensure presence of their executives in case of any hearing on the loan default cases, officials said.
"Minimum 10 aspirants including three influential political leaders have already obtained stay orders from the High Courts about their classified loans," the Sonali Bank official confirmed.
Some 2,460 aspirants have submitted nominations to run the race for 300 seats of parliament in the general election, according to the Election Commission (EC).
The deadline for nomination submission for the ninth parliamentary polls was Sunday under the latest schedule. The returning officers will scrutinise the papers on December 3 and 4 and candidatures have to be withdrawn by December 11. The central bank and the EC earlier asked the commercial banks and NBFIs to keep the branches and the loan recovery divisions at the head offices and the credit information bureau (CIB) of the Bangladesh Bank open from 9:00 am to 9:00 pm until December 4.
The BB has already sought information about the loan status until November 30 from the commercial banks and NBFIs to update its list of defaulters.
Under the amended Representation of the People Order (RPO), any person willing to contest the elections requires paying his or her default loan and utility bills seven days before the submission of nomination papers.
The EC earlier asked the commercial banks and NBFIs to update their information about the loan defaulters who might run for seats in the parliament.
As part of the move, the EC had sent a list of elected MPs from 1973 to 2001 to the banks and NBFIs for preparing a list of possible loan-defaulters who are likely to be candidates for the coming parliament and upazila elections.
UNB adds, Bangladesh Bank Governor Dr Salehuddin Ahmed Monday said he has instructed the commercial banks to use all possible means to realize the default loans ahead of the elections.
"We're always telling the bankers to realize the classified loans. It's their concern," he told a stipend distribution ceremony of Shahjalal Islami Bank Foundation at the Bangladesh China Friendship Conference Centre. Speaking about awarding nomination to the loan defaulters, the Governor advised the bankers to appeal in the upper courts against the loan-defaulting candidates who submitted nomination papers after obtaining stay orders from the courts.
"Use the opportunities to realize the classified loans through whatever means you can," the Governor told the bankers.
He also informed that the central bank would modernize its credit information bureau (CIB) to ensure latest information on defaulters as and when necessary.
Bangladesh Bank, he said, will send the defaulters' list to the Election Commission after the EC sends the list of candidates to the central bank.