Written by The Banking Post
A court has ordered the seizure (confiscation) of EXIM Bank’s headquarters in a case involving defaulted loans worth approximately Tk 3.89 billion (Tk 389 crore) owed to Bank Asia. On Monday (August 4), Judge Mujahidur Rahman of Dhaka’s Money Loan Court No. 5 issued the order.
After hearing the case and reviewing the documents, the judge ordered EXIM Bank to explain within 15 days why its headquarters should not be seized. Simultaneously, until such an explanation is provided or an objection is submitted, the court has ordered temporary confiscation of the bank’s head office.
The next hearing is scheduled for August 21, when EXIM Bank must submit its response.
Background of the Case:
According to case documents, EXIM Bank borrowed Tk 3.89 billion from Bank Asia a year ago due to a liquidity crisis. Despite the loan’s maturity, EXIM Bank failed to repay the amount. As a result, Bank Asia filed the case with Dhaka’s Money Loan Court No. 5 to recover the defaulted loan.
Court Order Details:
The plaintiff informed the court that EXIM Bank has no property mortgaged against the loan. However, EXIM Bank’s head office is located on the concerned property.
The plaintiff also stated that EXIM Bank’s financial situation is very fragile. Recently, Bangladesh Bank has initiated moves to merge EXIM Bank with other banks. Therefore, the existence of EXIM Bank is at risk. If the headquarters is not confiscated, it will be uncertain whether Bank Asia can recover the large amount of defaulted loan.
