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Liquidator to be appointed soon

BB formally announces to liquidate People's Leasing

Published : Wednesday, 10 July, 2019 at 9:36 PM  Count : 221
Observer Online Report

BB formally announces to liquidate People's Leasing

BB formally announces to liquidate People's Leasing


Bangladesh Bank has formally announced to liquidate People’s Leasing and Financial Services (PLFS), a non-bank financial institution, as the organization’s financial health deteriorated in the last several years.

Md Sirajul Islam, executive director of the country's central Bank, made the disclosure at a press briefing on Wednesday.

Urging depositors not to be worried, Sirajul Islam said People's Leasing has property worth Tk 3,239 crore deposit of Tk 2,036 crore. So, there will be no problem to pay depositors' dues.

Replying to a query from a journalist, Shah Alam, also a director of Bangladesh Bank, said depositors' money kept with the institution would be refunded soon as per direction of the court. For that, a liquidator would be appointed soon, he added.

Assuring depositors, he also said BB will do everything what necessary for protecting interest of the ones, So there is nothing to be worried, the official added.

Liquidation of PLFS means closing its operations permanently and the government will take actions to settle liabilities by selling off its assets. But the central bank as the regulator needs to take approval from the High Court before liquidation.

At the end of September, 2018, the total amount of deposits of PLSF stood at Tk2,086crore. But they do not have any cash to run daily activities. The total amount of outstanding loans stood at Tk1,131crore. Their defaulted loans stood at Tk748crore, which was 66.14% of the total loans, according to the Bangladesh Bank data.

SU



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