S Alam properties to be sold to repay depositors: Governor

The governor of Bangladesh Bank, Ahsan H Mansur, has urged the people to refrain from acquiring properties belonging to S Alam Group, as the authorities are planning to sell the group’s assets to repay the concerned depositors.

He made the call at a press conference on Wednesday, responding to a query regarding the group’s reported attempts to sell its properties.

“It needs to be carried out in compliance with legal procedures… We will request the government to take steps in this regard. Besides, no one should acquire the group’s properties, as the proceeds from their sale will be used to repay the depositors," he explained.

The central bank governor described the group’s owner, Saiful Alam, as the first individual in history to have looted banks in a planned manner. “I have no idea if anyone else in the world has looted banks in such a well-planned way.”

Regarding reforms in the banking sector, Ahsan H Mansur said that a banking commission will be introduced within around a month, in collaboration with Bangladesh Bank and foreign specialists.

He also detailed their plans to buoy the Islami Bank, saying, “We have asked the new board of Islami Bank to submit their action plan within a week. This is not a place for sitting idle; it demands hard work. Bangladesh Bank will extend all sorts of assistance.”

He warned that the bank’s board might be changed again if it fails to fulfill its role effectively. “All are being monitored. None will be spared if they commit irregularities.” 

He added that similar actions will be taken in the banks found with irregularities.

Regarding rising inflation, he said steps have been taken to control it. The dollar exchange rate has remained stable. If it continues, inflation is expected to decrease within the next six to seven months.

As the central bank is not offloading dollars, there is no risk of reserves going down. Even the government demands are being met from the interbank foreign exchange market. Therefore, the reserves are expected to rise in future, he added. 

The governor urged depositors to remain patient and avoid withdrawing all their deposits at once.

“We do not want any deposits to be lost. We will not print money to help repay the deposits, as it would not be beneficial for the nation and would push inflation up to 100 per cent. Please withdraw money as much as necessary. The situation will change in five to six months,” he explained.