• Monday, Jul 22, 2019
  • Last Update : 02:25 am

IMF mission concerned over soaring NPLs in banks

  • Published at 11:01 pm June 17th, 2019
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The International Monetary Fund logo is seen outside the headquarters building in Washington, DC, US Reuters

IMF’s Article IV Consultation Mission visits its member countries including Bangladesh every year to assess weakness and strength of economies

The International Monetary Fund (IMF) mission has expressed grave concern over the rising trend of non-performing loans (NPLs) in the banking sector.

The NPLs of banks rose by a staggering Tk16,962crore in a period of three months till March this year, increasing the amount of stress loan in the banking sector to Tk1,10,873.54crore,  according to the central bank data. 

The visiting IMF mission expressed the concern at a meeting, held at the Bangladesh Bank (BB) headquarters on Monday, with Bangladesh Bank's two deputy governors and other high officials. 

The mission also held a meeting with BB governor Fazle Kabir on Sunday. 

The mission recommended that the high amount of NPLs in the banking sector should be reduced, said a high official of the central bank. 

A five-member IMF’s Article IV Consultation Mission, led by Daisaku Kihara, Division Chief, South Asia 2 Division, Asia and Pacific Department, IMF is now assessing the country's overall macro-economic situation.

Talking to Dhaka Tribune, Bangladesh Bank executive director and spokesman Md Serajul islam said: “The visiting IMF mission met with BB governor on Sunday. It was an introductory meeting. There are also several meetings with the Bangladesh Bank.”

The mission is expected to meet finance minister AHM Mustafa Kamal and senior officials of the ministry of finance (MoF) and the central bank during the visit that will conclude on June 27, said central bank officials. 

Officials concerned at the finance division under the Ministry of Finance said the IMF mission would submit their recommendations on fixing banking sector and weakness in macro economy after their visit.

IMF’s Article IV Consultation Mission visits its member countries including Bangladesh every year to assess weakness and strength of economies.