• Monday, Oct 14, 2019
  • Last Update : 10:17 am

CAB: Defaulted loans weigh on consumers badly

  • Published at 03:43 am April 12th, 2019
Consumers Association of Bangladesh (CAB)

'Now, the total amount of defaulted loans with write-off stands at Tk130,000 crore in our banking sector'

Banks’ defaulted loans are increasing due to mismanagement of bank directors, weighing on consumers badly, Consumers Association of Bangladesh (CAB) President Golam Rahman said on Thursday.

He made the remark at a seminar titled “Strengthening consumers’ rights,” organized by CAB at Bidyut Bhaban in the capital.

Commerce Minister Tipu Munshi was the chief guest at the seminar, chaired by Rahman.

“Now, the total amount of defaulted loans with write-off stands at Tk130,000 crore in our banking sector. The defaulted loans increased due to mismanagement of bank owners,” the CAB president said.

As a consequence of soaring non-performing loans, consumers have to take loans from banks at high interest rate. The consumers do not get satisfactory services from the banks either, he added. 

About the new rescheduling policy, Golam Rahman said it will further empower the defaulting owners of the banks along with other defaulters, as they would be allowed to take loans at 9% rate, with 2% down payment facility, to regularize their debts.

Commerce Minister Tipu Munshi said: “The prime minister has several times instructed the banks to bring down interest rate to single digit. We hope the interest rate will come down soon to a single digit.” 

Golam Rahman also urged the Ministry of Commerce for initiatives to ensure safe food in the market. A number of organizations are working to ensure food safety. However, there is a huge lack of manpower to enforce regulations to make safe food available in the market, he added.

Minister Tipu Munshi said when people become conscious about their own consumers’ rights, then safe food will be ensured. Awareness about food safety should be increased among the people, he added.

Bangladesh Food Safety Authority Chairman Mohammad Mahfuzul Haque said there is a lack of coordination among the organizations working to ensure food safety. That needs to be addressed. The Ministry of Commerce will have to take the initiative in this regard, he observed.

Commerce Secretary Mofizul Islam and CAB General Secretary Humayun Kabir Bhuiyan also spoke at the seminar. 

Before the seminar, CAB’s district delegation conference was held at 10am.

Founded in 1978, CAB is a non-government and non-profit organization dedicated to the 

protection and promotion of consumers’ rights and interests in the country. Its mission is to empower consumers with the knowledge and skills for the effective protection of their rights and interests.