মঙ্গলবার, ২৬ মে ২০২৬, ১২:১৩ পূর্বাহ্ন
Loan defaults have now become a part of the business model and businessmen prefer defaulting in order to stay competitive, eminent economist Professor Rehman Sobhan, chairman of Centre for Policy Dialogue (CPD) said today (24 February).
“While some people are borrowing money and paying interest, others are not doing so, which reduces the competition due to an uneven playing field,” the economist said while speaking at a panel discussion at the second day of the 7th SANEM Annual Economists’ Conference (SAEC) 2024 in Dhaka.
Speaking at the event, Rehman Sobhan said deinstitutionalisation of the country was seen in recent years which led to substantial erosion of the rule of law.
The wealth of the business owners now completely depends on their political identity, he added.
He further said the whole loan default crisis has been going on for the last 40 years initiated by Ziaur Rahman’s policy of using state financial institutions to build the capitalist class.
“Now the capitalist class still continues that process even though over the years, thanks to the emergence of the readymade garments sector, it has developed its own autonomous capacity for regeneration and the capacity to grow itself without state patronage.
“We have a class of people who heavily depend on the access to state power and patrons in order to further business fortunes. This process hinders the effective competitive market,” he said.
“It is not that every businessman now wants to be a defaulter.”
He said a class of politically privileged people had gone on multiplying their fortunes through accumulation of rescheduling and defaulting their loans.
