Distressed businesses must be given an opportunity to recover. This will enable them to resume operations and repay their bank loans. Since the COVID-19 pandemic, the country’s economy has gone through multiple shocks. In response, we have held individual meetings with each client.

We listened to their specific challenges and attempted to provide solutions tailored to their needs. In some cases, loans have been rescheduled with a 5 percent down payment, while in others, a higher amount has been required.

During the previous government’s tenure, no down payment was required for loan rescheduling. Now, even a small payment is being ensured, which has contributed to increased recovery.

At the same time, companies that have become defaulters unintentionally but still possess production capacity are being supported with fresh investments. They are also repaying their loans.

Legal action is being taken only as a last resort. After completing due process, assets are auctioned. Through these measures, loan recovery from defaulters has been steadily increasing.

The writer is a senior banker and chairman of Agrani Bank Limited.