Bangladesh bank rescue could require $39 billion over eight years

Bangladesh Bank has proposed allocating Tk 60,000 crore (approximately $4.87 billion) annually from the national budget for five to eight years to repair banks damaged by alleged plunder, governor Md Mostaqur Rahman said Saturday.

If approved, the plan would cost Tk 3 lakh crore (approximately $24.33 billion) over five years or Tk 4.8 lakh crore (approximately $38.93 billion) over eight years.

Defaulted loans currently total Tk 6.06 lakh crore (approximately $49.15 billion), according to The Daily Star.

Rahman said money siphoned from banks belonged to the public and would have to be returned, with taxpayers now bearing the cost.

Rahman said roughly one-third of banking system funds had been plundered before he became governor in February. The proposal has not received final approval.