Governor Clarifies Financial Status Amid Debt Allegations

The Governor of Bangladesh Bank, Md Mostaqur Rahman, has formally addressed public speculation regarding his alleged status as a loan defaulter. The Governor clarified his financial standing during a post-budget press conference held on Friday at the Osmani Smriti Auditorium in Dhaka. The high-profile media briefing, convened following the presentation of the 2026-27 fiscal year national budget, featured a panel comprising ten government ministers, state ministers, and advisors alongside the central bank chief.

Responding directly to journalists’ questions regarding the persistent allegations, Governor Rahman defended his commercial track record, stating that he has been aware of the rumours since assuming office. He clarified that the financial obligations in question were tied to his ownership of an environmentally friendly manufacturing facility.

Factory Track Record and Loan Restructuring

According to the Governor, the enterprise maintained consistent operations and continuous export cycles without interruption. He emphasized that the company had never defaulted on its workers’ wages, nor had it ever requested or received any form of debt waiver or loan forgiveness from financial institutions.

Providing a specific breakdown of the corporate debt, Governor Rahman explained that the original credit facility amounted to Tk 1.5 billion (150 crore), which was initially secured at a highly favourable interest rate of 4 per cent. However, subsequent economic shifts saw the commercial lending rates escalate dramatically, eventually peaking between 9 per cent and 11 per cent.

The Governor acknowledged that the combined impact of rising interest rates and broader economic disruptions—including the global COVID-19 pandemic—had caused minor delays in the company’s scheduled debt servicing timeline. Despite these systemic challenges, he confirmed that Tk 1 billion (100 crore) of the total outstanding loan principal has already been successfully repaid to the lending institutions.

Banking Sector Vulnerabilities Acknowledged

Beyond his personal financial disclosures, Governor Rahman delivered a stark assessment of the critical vulnerabilities currently undermining the national financial ecosystem. He revealed that approximately one-third of the total capital within the domestic banking sector has effectively been stolen or misappropriated through financial irregularities.

The central bank chief concluded by stating that the loss of such a substantial volume of liquidity has created an unprecedented institutional crisis. He noted that stabilizing the wider banking system and restoring public confidence would remain the most significant challenges facing regulatory authorities in the immediate future.

Central Bank Governor Loan Summary