IMF commends Bangladesh effort taken to reduce NPLs

The International Monetary Fund (IMF) has welcomed Bangladesh for progress in creating a roadmap to reduce the non-performing loans (NPLs).

"Priorities should focus on reducing NPLs, implementing risk-based supervision, and enhancing corporate governance. In this context, we welcome the authorities progress in creating a roadmap to reduce NPLs, but this process should be carefully sequenced," said Chris Papageorgiou, IMF Mission Chief for Bangladesh.

Talking to BSS, Chris Papageorgiou said above all, the definition for loan classification and provisioning rules should be better aligned to international standards.
This should be followed by an asset quality review to evaluate the state of banks balance sheets, he added.    —BSS