Bangladesh, May 19 -- The fact that the banking sector needs something effective in place to tide over the problems of huge classified loans and liquidity shortage is incontestable. But how far the special facility that the central bank offered last Thursday to bank loan defaulters and also 'good borrowers' would help banks in overcoming the crisis is not clear. The latest move being ambiguous, to some extent, may have only compounded the confusion of all concerned.
Economists are quite critical of the facility expressing their apprehension that it might worsen the unpalatable situation in the country's banking sector. Besides, their argument that the concessions that the central bank has extended lately to loan defaulters would encourage ...