Analysts question ‘absence’ of plans for troubled banking sector in Kamal’s first budget

Economists have also questioned whether it is wise to propose a huge revenue target of Tk 3.7 trillion for 2019-20 in the Tk 5.23 trillion budget while the collection missed the target by Tk 220 billion in the outgoing fiscal year.

“Stern measures will be taken against the willful defaulters of bank loans,” Kamal said in his speech in parliament on Thursday, without specifying the measures.

He noted that the government has launched a scheme for borrowers, who defaulted “unwillingly”, to repay the loans with down payment and interests.

He said instruments like Wage Earners’ Bond, venture capital, treasury bond, including a vibrant bond market, will be encouraged to stop the banks from giving long-term loans by collecting short-term deposits.

Palli Karma-Sahayak Foundation or PKSF Chairman Qazi Kholiquzzaman Ahmad, however, thinks Kamal should have been more specific on his plans about taking the banking sector out of trouble.

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