Amid financial challenges, Beximco Group has struggled to pay worker salaries for months, prompting government intervention to cover these wages.
Now, a receiver has been appointed to manage the group’s operations, as announced by the Governor of Bangladesh Bank, Dr Ahsan H Mansur, at the third Bangladesh Economic Conference held by Banik Barta on Monday (November 11) in Dhaka.
Dr Mansur clarified that the appointment of a receiver does not indicate the group’s closure but aims to streamline operations. “Beximco’s accounts are not frozen, and the receiver is intended to stabilise operations,” he said, noting that the government has funded employee wages to keep the company functional. “Our priority is ensuring the group’s export revenue benefits the country.”
Addressing broader banking sector issues, the governor acknowledged that resolving sector-wide challenges would take time. “Our banks faced significant past turmoil, and some large borrowers have overstretched resources,” he remarked.
However, he assured that no banks would close, adding, “We are offering liquidity support to weaker banks, though rapid recovery isn't feasible.”
On Bangladesh’s economic outlook, he countered fears of crisis, saying, “We are not another Sri Lanka. Our growth remains steady, and we are actively working to stabilize the exchange rate and improve the investment climate.”
He emphasised that steps to prevent money laundering and recover funds are in progress, mentioning upcoming cooperation with international partners, including the US, UK, and World Bank representatives.
Highlighting ongoing banking reforms, Dr Mansur pointed to efforts to decentralise financial services. “Currently, 59% of banking services are concentrated in Dhaka and 17% in Chittagong, but we are expanding access nationwide,” he said, citing the success of agent banking and mobile financial services.
Acknowledging that some banks are currently unable to meet withdrawal demands, he noted that Bangladesh Bank has withheld additional cash support for the past three months to maintain economic stability. “For investment to grow, we need a stable macroeconomic environment,” he said, urging patience from business leaders as efforts to recover funds continue through legal channels.
Dr Mansur also addressed inflation, noting, “No country sees immediate inflation relief within months of implementing policy. We need sustained efforts; I ask for another eight months.” Assuring that essential imports are being facilitated through open letters of credit, he stated, “Our foreign exchange shortage has improved, and supply-side initiatives are underway.”
Concluding, he mentioned plans to introduce the Bank Resolution Act, asserting that, while Bangladesh's financial sector requires substantial reform, progress will be seen in the next 2-3 years.