Bangladesh climate change fund run through in troubled Farmers Bank

Farmers Bank

The Ministry of surroundings and Forests is in hassle when it didn’t draw Tk five.08 billion of the climate fund from the troubled Farmers Bank wherever it had alert the money.

Environment and Forests Minister Anisul Islam Mahmud told parliament on Tuesday that his ministry had hip to the finance ministry concerning the portion of the East Pakistan temperature change monetary fund obtaining stuck within the bank.

The bank has been bedevilled by many varieties of irregularities, particularly in loan unleash since its institution by ruling Awami League MP and former minister Muhiuddin Khan Alamgir four years past.

Alamgir resigned recently as Farmers Bank chairman when facing allegation that the bank has disbursed loans on the far side the limit permissible by the principles and far of it’s changed into debt, making a financial condition.

He is the chairman of the parliamentary committee on public accounts currently.

The latest cupboard shuffle earlier in Gregorian calendar month saw opposition Jatiya Party leader Anisul and Jatiya Party (JP) leader Anwar Hossain Manju swap ministries of surroundings and water resources.

In response to an issue from Carlos the Jackal Uddin MP in parliament, Anisul aforementioned the ministry had deposited quite Tk five.08 billion of the temperature change fund in annual mounted deposit accounts at totally different branches of the Farmers Bank in Dhaka.

The bank was giving the utmost rate of interest on the deposit at the time, Anisul noted.

The terms of the accounts with over Tk four.55 billion have terminated and therefore the ministry had reminded the bank many times to money the mounted deposits, the minister aforementioned.

“But the bank has aforementioned it cannot money the FDRs currently as a result of financial condition,” he said.

The East Pakistan Bank had not seasoned the Farmers Bank’s letter seeking Tk three billion money injection.

Recently, the financial organization provided the Farmers Bank with Tk 960 million through repo.

The Farmers Bank secured its licence in conjunction with eight different banks in Gregorian calendar month 2013 in a very politically influenced move.

In a report in Gregorian calendar month last year, the govt aforementioned the Farmers Bank has created ‘systematic risk’ for Bangladesh’s entire money sector by taking loans with high interest rates from depositors and different banks whereas it doesn’t have the capability to repay.

The bank didn’t attract depositors and existing depositors ar more and more opting to withdraw their funds.

As of September, the bank’s defaulted loans stood at Tk three.77 billion, 7.45 % of the entire loans disbursed, in keeping with knowledge from East Pakistan Bank.

Between March and Gregorian calendar month this year, the bank solely recovered Tk seventy million in loans. The bank’s high ten defaulters alone owe Tk one.34 billion.

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