No banks will be shut down despite some continuing to struggle as the previous Awami League government left those in dire straits, said Finance Adviser Salehuddin Ahmed adding "while a few (banks) are recovering,The adviser made these remarks at a press conference at the Secretariat in Dhaka on Tuesday.
Ahmed said Islami Bank, a large institution, is showing signs of improvement, although some banks will continue to face challenges.
He also addressed the impact on small investors in the stock market, acknowledging their losses from investments in poorly performing companies. Compensation measures are being considered, according to Ahmed.
Highlighting efforts to reduce budget expenditure, Ahmed assured that these measures would not affect government employees' salaries and allowances. He mentioned that some projects under the Annual Development Programme are being reviewed for their necessity, as they were initiated for political reasons.
"The sun of our success has risen, and our achievements are not too bad. We will leave a footprint," Ahmed said, reflecting on the interim government's accomplishments.
He also said the World Bank and the Asian Development Bank have assured their cooperation, a significant success for the government.
Ahmed acknowledged the rising prices of potatoes and onions, citing multiple reasons behind the price hikes.
Salehuddin Ahmed also said the interim government has inherited a devastated economic situation from the previous Awami League administration. He informed about widespread irregularities and corruption in sectors ranging from banking to development projects.
"From the banking sector to the capital market, there is a bleak scenario everywhere. Irregularities and corruption in development projects have compounded the crisis," he said.
Dr. Salehuddin assured that the government is working diligently to address the issues. "We are trying hard to correct all these anomalies," he said, emphasizing efforts to restore order and stability across key economic sectors.
Outlining the government's fiscal priorities, the adviser said austerity measures are being implemented to reduce the budget deficit. "With that, we face the challenge of increasing revenue. Without improving revenue, we will not be able to finance our development projects," he added.
To bring the discipline in the financial sector, the adviser said that the government is scrutinizing the annual development projects to figure out which projects were taken politically or unnecessarily.
Turning his attention to the banking sector, he noted that significant steps have been taken by Bangladesh Bank to stabilize the system. "As a result, the banking sector is reviving. We do not have any plan to close down any bank," he assured.
However, he acknowledged lingering weaknesses within the central bank. "Bangladesh Bank itself needs to be reformed," he said, pointing to deficiencies in supervision, monitoring, and policymaking. "Reforms must go beyond amending laws," Dr. Salehuddin said.
