There will be no famine in Bangladesh says Bangladesh Governor
Dr. Ahsan H. Mansur, Governor of the Bangladesh Bank, has stated that there will be no famine in Bangladesh. We have not become Sri Lanka. Our growth has not declined. No matter what policies are implemented, inflation does not decrease in any country within a year. We have only passed 4 months. You have to give me 8 more months. We are not just relying on monetary policy. LCs for all necessary goods are open. Duties have been relaxed as needed.
He made these remarks at the Third Bangladesh Economic Conference titled 'Inequality, Financial Crime, and Healing Bangladesh's Economy', organized by Banik Barta at Pan Pacific Sonargaon in the capital on Monday in November 11.
The governor said, "We have not become Sri Lanka. Our growth has not become negative. We are fixing the investment rate and the environment. We are optimistic that investment will come in the future."
He said, "Beximco was unable to pay its workers for several months. The government is paying the salaries and allowances of their workers. A receiver has now been appointed in the group to revive the group (Beximco). No bank account of any business institution has been closed. Appointing a receiver for Beximco does not mean closing the company, but rather reviving it.
Regarding banks, he said, "Our banking sector has suffered the most in recent times. If you want a quick reform or solution, I will have to resign. Because 27 billion taka worth of assets of one bank were in the hands of one family. They took 23 thousand. I don't have magic. But I can say that no bank will be closed. Because they are being given liquidity support.
Regarding money laundering, he said, "Hundreds of billions of taka have been laundered out of the country through corruption. It is difficult to recover. But we have set a trap. Now it remains to be caught. In the meantime, we have contacted both domestic and foreign sources. A US representative is coming this week to assist us, a UK representative will come, the World Bank will come, and we will also talk to Singapore. We do not want any business or industry to close down. Because many people are employed there. Again, the accounts of no business establishment have been seized, nor will they be. Banking and financial institutions need to be taken to the grassroots level. 59% of total banking is in Dhaka, 17% in Chittagong, and the rest is elsewhere. We want to spread it across the country. Our agent banks are doing a great job. MFS services are spreading rapidly through them.
The governor said, "Some banks are unable to pay customers' money. But efforts are underway to provide them with cash assistance. However, no cash assistance has been printed and given out from the Bangladesh Bank in the last 3 months. Because the macroeconomy needs to be stable. If it is not stable, no investment will come. So businessmen have to be patient. Our goal is for those who have taken bank money to stay with the bank and return the money. Efforts are underway to legally recover the money that has gone abroad.
He further said, "There is no foreign exchange shortage now. I think the necessary initiatives have been taken on the supply side. We want to bring in a bank resolution act. The banking sector has suffered the most. Our financial sector is weaker than Pakistan's. It will take 2-3 years to fix this."
Dr. Salehuddin Ahmed, Interim Government's Economic Adviser, was present as the chief guest at the conference chaired by Banik Barta editor Dewan Hanif Mahmud. Also present were Professor Dr. Sayema Haque Bidisha of the Department of Economics at Dhaka University, former Commerce Minister Amir Khasru Mahmud Chowdhury, former Adviser to the caretaker government Dr. Hossain Zillur Rahman, and Asian Development Bank (ADB) Country Director Hoe Yun Jeoung.
Nearly four hundreds guests, including prominent economists, secretaries of various ministries, vice-chancellors of various universities, chairmen and MDs of various government and private banks, were present at the conference.
