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Bangladesh Bank is expected to announce this week a detailed repayment scheme for returning deposits to customers of four troubled non-bank financial institutions (NBFIs).
The institutions—People’s Leasing (Abiba), Fareast Finance, FAS Finance and International Leasing—have been plagued by years of financial irregularities and alleged embezzlement.
As part of the liquidation process, Bangladesh Bank has already appointed administrators to oversee the affairs of the four institutions.
Officials familiar with the process said the central bank is expected to finalise the deposit repayment framework this week. Disbursements will begin in phases after the government approves the plan and releases the funds required for implementation.
Bangladesh Bank spokesperson Arif Hossain Khan said the framework would broadly follow the approach adopted for depositors of five troubled banks, while being tailored to the circumstances of the four finance companies.
Under the proposed structure, individual depositors with savings of up to Tk10 lakh would receive their deposits in full. Those with deposits of up to Tk20 lakh would initially receive 90 per cent, while those with deposits of up to Tk30 lakh would receive 85 per cent in the first phase.
The initial repayment ratio would gradually decline as the size of deposits increases. The final scheme will specify the amount each category of depositor will receive initially, when outstanding balances will be paid and the overall timeline for completing the repayments.
Khan said the scheme would provide a clear roadmap for both full and partial repayments, including the schedule for disbursing any remaining balances.
Economist MK Mujeri, former director general of the Bangladesh Institute of Development Studies (BIDS), welcomed the initiative, saying protecting depositors and returning their savings should be a priority.
He also called for the troubled institutions to be liquidated efficiently after ensuring that depositors’ claims are addressed.
The repayment plan will initially focus on individual depositors. Claims involving institutional depositors will be considered after the assets of the four companies are assessed and the liquidation process is completed.