Cash strapped BKB, RAKUB waive Tk 3.0b interest in 8 years
Wednesday, 11 November 2009
Sheikh Shahariar Zaman
Bangladesh Krishi Bank (BKB) and Rajshahi Krishi Unnayan Bank (RAKUB) waived about Tk 3.0 billion interest during the last eight years though the organisations themselves are cash strapped for years.
"This is absurd, as on the one hand they are asking the government for refinancing, and on the other hand they are waiving billions of taka interest," said a finance ministry official.
The government gave BKB Tk 4.0 billion in recapitalisation and Tk 1.65 billion for interest subsidy in 2008-09 fiscal, whereas RAKUB received Tk 2.0 billion recapitalisation and Tk 650 million interest subsidy, he said.
BKB waived Tk 2.6 billion interest and RAKUB waived Tk 150 million from 2001 to 2008.
According to a report, BKB received 70 proposals and waived Tk 2.6 billion against those proposals. However, separate default institutions of the same owners repeatedly got the waive benefit from the bank.
BKB waived Tk 11 million interest of SM Monir Textiles, Tk 10.8 million of Fakir Textiles and Tk 16 million of Mitshu Textiles in 2001 and 2002, though these companies are owned by the same person.
In 2004, BKB waived Tk 56.7 million interest of Akkas Cold Storage, and again waived Tk 51 million in 2007.
Bangladesh Krishi Bank (BKB) and Rajshahi Krishi Unnayan Bank (RAKUB) waived about Tk 3.0 billion interest during the last eight years though the organisations themselves are cash strapped for years.
"This is absurd, as on the one hand they are asking the government for refinancing, and on the other hand they are waiving billions of taka interest," said a finance ministry official.
The government gave BKB Tk 4.0 billion in recapitalisation and Tk 1.65 billion for interest subsidy in 2008-09 fiscal, whereas RAKUB received Tk 2.0 billion recapitalisation and Tk 650 million interest subsidy, he said.
BKB waived Tk 2.6 billion interest and RAKUB waived Tk 150 million from 2001 to 2008.
According to a report, BKB received 70 proposals and waived Tk 2.6 billion against those proposals. However, separate default institutions of the same owners repeatedly got the waive benefit from the bank.
BKB waived Tk 11 million interest of SM Monir Textiles, Tk 10.8 million of Fakir Textiles and Tk 16 million of Mitshu Textiles in 2001 and 2002, though these companies are owned by the same person.
In 2004, BKB waived Tk 56.7 million interest of Akkas Cold Storage, and again waived Tk 51 million in 2007.