450 Government Employees–Officers Losing Jobs

Staff Correspondent

Due to the initiative to close or liquidate six non-bank financial institutions (NBFIs) in the country, the jobs of nearly 450 officers and employees have fallen into uncertainty. Amid concerns that finding new employment will be difficult given their age and the current social reality, resentment has arisen among the affected officials.Some have even warned that they will take to the streets in protest if necessary.

According to them, if the institutions were not closed but instead provided with financial assistance and sufficient time, there would have been an opportunity for them to recover. However, Bangladesh Bank states that there is no alternative to liquidation because the institutions lack the capacity to return depositors’ money.According to Bangladesh Bank’s decision, in the first phase, FAS Finance, Premier Leasing, Fareast Finance, Aviva Finance, People’s Leasing, and International Leasing are proceeding toward liquidation.

Although the management of International Leasing claims that with the necessary time and support, the institution can be revived. In support of this claim, they have organized a press conference at the National Press Club today (Thursday).According to annual reports and relevant sources, currently around 450 officers and employees are working in these six institutions. Among them: 204 in Aviva Finance, 80 in Premier Leasing, 54 in International Leasing, 39 in People’s Leasing, 38 in FAS Finance, and 30 in Fareast Finance.

On-the-ground observations show that due to the long-term inability to return deposits, customer presence at the institutions’ offices is very low. Virtually a deadlock situation prevails at International Leasing’s office in Dilkhusha and Aviva Finance’s office in Motijheel.Depositors complain that their money has been stuck for years; now they are only trying to recover the principal amount.

A customer of Aviva Finance, Rashedul Karim, said that two years ago he deposited Tk 250,000 at 12% interest, but now he cannot withdraw it. He mentioned hearing that Bangladesh Bank has declared the institution bankrupt, and customers have been told that only the principal will be returned without interest.Mohammad Imdadul Islam, Managing Director of International Leasing, alleged that the liquidation decision is allowing major loan defaulters to evade responsibility.

In his view, it is not enough to just return deposits; recovering loans and bringing the responsible parties under the law is essential.He claimed that the decision to close the institution was made without listening to their side. He also stated that with sufficient time, they would be able to turn the institution around and return the depositors’ money.

Bangladesh Bank’s Executive Director and Spokesperson Arif Hossain Khan said that the liquidation process for the six institutions is ongoing. The relevant department is working on how and within what timeframe the deposits will be returned. The final decision will be announced once it is made.Due to high default loans, long-standing irregularities, and failure to return deposits, Bangladesh Bank issued show-cause notices to 20 NBFIs last year. In the evaluation, the recovery plans of 9 institutions were not satisfactory, leading to the liquidation initiative. The default loan rates in these institutions range from 75% to 98%.

Among them, GSP Finance, Prime Finance, and BIFC—these three institutions have been given three to six months; if satisfactory progress is not shown within the stipulated time, plans are in place to bring them under liquidation as well.