Waiver of interest to defaulters objectionable: Farasuddin

Due to the influence of the IMF in this year’s budget, there was no direction to bring back the smuggled money. If the cycle of money laundering, corruption and defaulting is not curbed, it will pose a threat to the government. Loan interest is being waived off for major defaulters. Waiver of loan interest to defaulters is very objectionable.

Former Governor of Bangladesh Bank Professor Dr. Mohammad Farasuddin said these things.

He said that the 50 thousand crores of interest waived by the government banks should be considered as defaulted loans. Currently inflation is said to be 9 percent but actually it is closer to 10 percent. The budget speech said inflation will be brought down to 6.5 per cent, but it will not be achieved. Many people died of starvation in 1974 as middlemen created artificial shortages of stocks and supplies. So there is a balance to be maintained between stock and supply.

Dr. Farasuddin said that the 96,000 crore rupees borrowed from abroad in the budget can be a very harmful weapon. The government should emphasize borrowing from savings bonds to reduce debt dependence from domestic and foreign sources. If more loans are taken from banks, investors will not get loans, investment will stagnate. On the other hand, taking loans through savings bonds will reduce inflationary pressure and strengthen the social security sector.

Chairman of the organizing organization Debate for Democracy Hasan Ahmed Chowdhury Kiran presided over the debate.

He said that many honest businessmen want to pay tax fairly but are not able to pay fair tax due to procedural complications of NBR or non-cooperation of authorities. Currently, the total amount of unpaid loans in the country is more than 5.5 lakh crore rupees. However, the total amount of domestic and foreign debt is over 100 billion dollars. Gradually our hard-term loans are increasing, increasing the burden of debt servicing. That’s why we have to take care that the money we are taking as loan is being spent properly or not. Therefore, budget implementation is not possible without good governance, accountability and political will.

Debaters from Jagannath University defeated debaters from Comilla Victoria Government College in the shadow debate titled ‘This year’s budget will help in sustainable development’. The judges in the competition were Professor Abu Muhammad Raees, Journalist Zakir Hossain, Journalist Daulat Akhtar Mala, Journalist Oman Nahar Azmi and Journalist Sushant Sinha.

Trophies, crests and certificates were awarded to the winning teams at the end of the competition.