Bangladesh bank: Bangladesh Bank (BB) has mandated that applicants must withdraw all pending lawsuits against the government, central bank, or respective bank to qualify for government-announced incentive packages or special policy support.
According to United News of Bangladesh, the central bank issued a circular to the chief executives of all scheduled banks, stating that this new directive is effective immediately. The circular mandates that applicants must not only withdraw existing cases but also submit a complete list of withdrawn lawsuits with their applications. Additionally, they must provide a formal declaration through an affidavit on a non-judicial stamp, confirming that no lawsuits against the government, Bangladesh Bank, or the concerned bank are pending or under trial.
The BB has long offered various policy supports and incentive packages aimed at generating employment, boosting credit flow to productive sectors, and fostering a private investment-led economy. These measures include assistance for reopening closed export-oriented factories and credit facilities for entrepreneurs in sectors like agriculture and CMSME.
However, central bank observations revealed that certain clients were benefiting from government incentives while simultaneously pursuing legal actions against the government, Bangladesh Bank, or lending banks, creating legal complications and hindering smooth policy implementation.
Central bank officials expect the new directive to reduce case backlogs and legal uncertainties, making the process more transparent and accountable for entrepreneurs seeking to revive their businesses, expand production, and create jobs. Bankers noted that, in the past, some institutions pursued legal battles while availing incentive schemes, delaying policy execution and forcing prolonged litigation. The new policy aims to discourage such dual stances.
Legal experts caution that while implementing this directive, it is crucial to balance an applicant’s right to seek constitutional remedies with conditions attached to government policy support. They advise banks to strictly adhere to the circular’s provisions during execution.
The BB hopes the policy will ensure incentives reach actual entrepreneurs more effectively, lower legal friction, and stimulate national economic activities through increased investment, production, and employment generation.