The defaulted loans of 55 businesses of Chattogram in banks and financial institutions are about Tk 50 thousand crores of which at least 33 businessmen have settled abroad without paying Tk 20 thousand crores of debt.

Bankers said that the officials were forced to give loans due to the relationship of borrowers with bank managers-entrepreneurs. As a result, the bank did not follow proper regulations in giving these loans.

According to banks and related sources, the amount of defaulted loans of 15 business groups of Chittagong is Tk 9,952 crores. Of this, the defaulted loan of Giyas Uddin Kusum of Shah Amanat Iron Mart in Sitakunda of Chattogram is Tk 600 crore. Legend Holding's defaulted loan of SM Abdul Hai is Tk 525 crore.

Eight banks owe Tk 500 crore to Mohammad Isa Badsha of Badsha Group. Seven banks and financial institutions owe Tk 500 crore to Abdul Alim Chowdhury, the head of NAM Corporation. Four banks owe Nazmul Abedin Tk 400 crores.

Shah Alam of Alam & Co. owes Tk 300 crore to eight banks. Bank owes Tk 280 crore to Mohammad Morshed of C&A Group. MAF International owner Maksudul Alam owes Tk 200 crore to four banks.

Zahid Hossain Mia, director of Zahid Enterprises, owes Tk 186 crore to various banks. Five banks owe Tk 150 crore to Ferdous Khan Alamgir, the owner of Baghdad Group. Chattogram's Iffat International owner Didarul Alam owes about 150 crores to two banks. The owner of SAARC International, Anwarul Haque Chowdhury, has a loan of Tk 71 crore from two banks.

SM Shamim Iqbal, owner of NM Trading Corporation and former chairman of Al Arafah Islami Bank, took a loan of Tk 70 crore from three banks.

Liaquat Ali Chowdhury, the owner of SL Enterprises in Khatunganj of Chattogram, is not paying Tk 20 crores taken from various banks.

Mohammad Mojaher Hossain, the owner of Yasir Enterprise in Khatunganj, has taken a loan of Tk 1,200 crore from various banks. But not paying. 12 banks and financial institutions owe more than Tk 800 crore to the owners of MAC International.

Habib Group's defaulted loans to 30 banks and financial institutions amount to Tk 4 thousand crores.

Ali Tarek Parvez, excecutive vice president of National Credit and Commerce Bank (NCC) told Bangladesh Pratidin, “Bank managing bodies are taking loans anonymously. Some businessmen have suffered losses, and some have deliberately left the country without repaying their bank loans.”

“As so many businessmen have left the country, bank officials now have to run to court every day to recover these loans. This senior banker commented that the money of the bank is the deposit of the people. Therefore, to recover this money, the state should take initiatives to bring the defaulters back to the country,” he added.

Another private bank official said, “The banks did not follow proper rules in giving these loans. While some businessmen fell into losses, others deliberately embezzled money and put the bank in danger.”

In addition to not repaying the loan, many have migrated abroad by not paying money. In the last decade, 33 owners of 22 businesses in Chattogram have left the country with debts of around Tk 20,000 crore.

Eleven of these businessmen are living in Canada. Six are based in London, four in the United States, three in Malaysia, three in the United Arab Emirates, two in Turkey and one each in Australia, Montenegro and Singapore.

The banks and financial institutions of Chattogram are in crisis due to the large number of defaulters leaving the country and living abroad. Arrest warrants are also issued against all of them in multiple cases under the Financial and Check Refusal Act.

Thirteen people migrated abroad before the ban and another 13 after the ban.

Ashiqur Rahman Lashkar, the owner of Mahin Enterprises, recently left the country without paying the bank loan. He has taken a loan of 2 thousand crores from 10 banks.

Five owners of Habib Group left the country at the end of last year. The debt of this group to the banks is more than Tk 4 thousand crore.

Noorjahan Group director Zahir Ahmed Ratan owes more than Tk 2,600 crores to various banks. Banks will get Tk 1,500 crore from Mishmac Group. Muhammad Ali, the owner of Imam Group left the country with a debt of Tk 800 crore.

Zahir Uddin, managing director of Mustafa Group, has migrated to Canada without repaying a loan of Tk 2,500 crore.

In all, the banks have about Tk 50 thousand crores stuck with 55 business groups.

Professor Dr. Mustafizur Rahman, Distinguished Fellow of Centre for Policy Dialogue (CPD) told Bangladesh Pratidin, “Disbursement of anonymous loans should be stopped and the law should be strictly enforced to recover defaulted loans. At the same time those involved in distribution of benami loans should be brought under the law.”

“Now due to anonymous loans and bad loans, there will be a negative impact on the banking sector. It is very harmful for the economy. Therefore, according to the prevailing laws of Bangladesh, Bangladesh Bank should take decisions independently and emphasize to bring them under the law,” he added.

@ The article was published on print and online versions of The Bangladesh Pratidin on April 26, 2023 and has been rewritten in English by Tanvir Raihan.