Tuesday, January 25 2022

Minister of Finance says law is being drafted in this regard and is in final stages

AHM Finance Minister Mustafa Kamal said on Wednesday that Padma Bank’s merger with other banks could take place once a law is passed in this regard.

“Of course, we can look at the proposal. But for that to happen, a law needs to be passed in this regard,” he said in response to questions after chairing meetings of the Cabinet Committee on Economic Affairs and the Government. Cabinet Committee on Government Procurement.

The minister said the law is being drafted and is in the final stages.

Read also – Ministry of Finance to forward Padma Bank merger proposal to BB

“Once it is presented to the national parliament and adopted, bank merger operations will begin,” he said.

Claiming that he had not yet received any proposal regarding the Padma Bank merger, Kamal said that all state commercial banks such as Sonali Bank, Janata Bank, Agrani Bank and Rupali Bank have shares in Padma. Bank.

Apart from this, representatives of state-owned commercial banks also sit on the board of directors of Padma Bank.

The minister said that initially those associated with this bank could not run it properly and were involved in allegations of corruption.

“Following the filing of the files, legal proceedings are underway while the culprits are currently in prison.”

Kamal said the government should look out for the interests of the bank’s shareholders so that the bank is not closed and its operations continue.

“For this, the public banks came to his rescue earlier.”

Regarding Padma Bank’s offer to raise foreign funds, Kamal said any law-abiding person can try to raise foreign funds.

“If foreign investors think it is viable to invest in the bank after seeing its balance sheet, then anyone can invest,” he continued.

The finance minister said, however, that Padma Bank must comply with all existing rules and regulations.

When Farmers Bank, which later turned into Padma Bank, was on the verge of collapse due to lending anomalies since its inception in 2013, the four state-owned banks and the Investment Corporation of Bangladesh came up with a plan to Tk 715 crore rescue in 2018.

Read also – Padma Bank gets 5 years to pay 55C fine

When asked for details on a Panama-based company named Business Research International Corporation Inc (BRIC), which recently won the joint venture contract to set up a 50 MW (AC) solar power plant in Terokhada upazila in Khulna, Kamal said no anomalies were found. concerning the company.

The finance minister said the government would not invest in the solar power plant, but investors in the joint venture would invest and thus generate electricity.

“The government will buy electricity from them while the total investment will be made by the joint venture.”

Earlier on September 22, the CCGP meeting approved the proposed establishment of the 50 MW solar power plant in Khulna.


Truer exposure to asset-backed securities?


Coronavirus latest: CDC appeals for vaccination during pregnancy, warning of higher Covid death risk

Check Also