Central Bank advises Citigroup not to default

Bangladesh Bank has advised lending banks not to register the loans of the country's leading industrial conglomerate City Group as non-performing loans. It has also been suggested to facilitate restructuring and rescheduling of long-term debt, if necessary, so that the industrial group can turn around its problems. Besides, an initiative has also been taken to form an alliance with lender banks to provide capital to the group to run the business.

These suggestions were given in a tripartite meeting held at Bangladesh Bank on Sunday morning. In the meeting, Bangladesh Bank Governor Mostakur Rahman, Deputy Governor Kabir Ahmed and Sarwar Hossain, top executives of lenders and managing director of City Group. Hasan was present.

According to Bangladesh Bank sources, some banks have recently registered City Group's loans as defaulters and taken legal measures to collect these loans. In view of that, a tripartite meeting was held yesterday through the mediation of Bangladesh Bank. Earlier, Bangladesh Bank had ordered the group not to default on its Tk 26,000 crore loan until last September. As that deadline expired, some banks listed the group's loans as defaulters. In this situation, Bangladesh Bank advised the creditor banks not to default on the group's loan for the time being.

On behalf of lender banks, City Bank Managing Director (MD) Masrur Arefin, Mutual Trust Bank MD Syed Mahbubur Rahman, Bank Asia MD Sohail RK Hussain, BRAC Bank MD Tarek Refat Ullah Khan, Prime Bank MD Faisal Rahman, Eastern Bank MD Hasan O. Rashid, Pubali Bank MD Mohammad Ali, Southeast Bank MD Khalid Mahmud Khan and other representatives of other banks were present.

When asked about the meeting, Mutual Trust Bank MD Syed Mahbubur Rahman told Prothom Alo that Citigroup has never defaulted before. Apart from this, there are no complaints against the group. For this, everyone wants the group to overcome the problem and turn around again. All banks are keen to support the group. Bangladesh Bank has also asked the banks not to take any decision that would worsen the group. With help, the group will revert back to its previous state.

It is known that the loan amount of City Group to 47 domestic and foreign banks and financial institutions is about 26 thousand crore taka.

According to central bank sources, some banks have registered the group's loans as defaulters due to the expiry of Bangladesh Bank's previous guidelines. If one bank defaults, no benefit is available from the other bank. Because of this, the group is in trouble. Because of this, Bangladesh Bank said in the meeting that no decision can be taken to stop the business of the group.

Regarding the meeting, Pubali Bank MD Mohammad Ali said to Prothom Alo, "Various suggestions have come up in the meeting to return the group to normal flow." Banks are keen to ensure that the group's business continues. We all want the group to turn around.

Meanwhile, in the meeting, it was informed by the lending banks that the bank's board decided on the issue of default. Therefore, if specific instructions are given from Bangladesh Bank, it facilitates decision-making.

When asked, Southeast Bank MD Khalid Mahmud Khan told Prothom Alo, "Citigroup will deposit some one-time money to regularize the group's debt within the current month." Then we will send the proposal to Bangladesh Bank. If the central bank approves, the group will reach a good position.