Dhaka, Bangladesh (BBN) – The central bank of Bangladesh will seek information about default position until November 5 from commercial banks and non-banking financial institutions (NBFIs) to update its list of defaulters.

The Bangladesh Bank (BB), the country’s central bank, took the move in line with the Election Commission’s (EC) revised deadline for submission of the nomination papers for both the parliamentary and upazila elections.

Under the new deadline, the last date for filing of nomination papers for both elections has been re-fixed as November 20 instead of November 13.

Loan and utility bills defaulters cannot participate in the national election as per the existing Representation of the People Order (RPO).

“We’ll ask the banks and NBFIs to provide information about recovery and rescheduling of loans until November 5 for updating our defaulters list,” a BB senior official told BBN in Dhaka.

He also said the BB will issue a directive in this connection on Monday asking the banks and NBFIs to provide such information immediately.

On Saturday, the commercial banks and NBFIs provided their updated information about default loans as on October 30 to the central bank.

“We’ll identify loan defaulters in line with the existing rules and regulations,” the official said, adding that the central bank is ready to provide credit information of the prospective candidates in the next elections.

“Our responsibility is to provide credit information to the EC. The Credit Information Bureau (CIB) of Bangladesh Bank has already prepared the information,” BB Governor Dr Salehuddin Ahmed told reporters Sunday.

The BB governor was talking to the reporters following a meeting with an International Monetary Fund (IMF) mission, headed by Executive Director for the Asia Pacific region Thomas Rambough, reviewing the economic developments in view of the current global financial crisis.

“It’s not the responsibility of the central bank to prevent candidates from elections. The EC will take necessary steps on the basis of the credit information,” Mr. Ahmed said while replying to a query.

Meanwhile, the commercial banks have formed high-powered committees to monitor, supervise and coordinate among the officials who are working to prepare the list of prospective candidates in the elections.

The commercial banks had already sought the list of prospective candidates from across the country in the upcoming elections that would help to finalise such a list, according to a senior official of a state-owned commercial bank (SCB).

“We’re now working to update information about the loan defaulters in line with the EC advice,” the official told BBN in the capital, adding that the commercial banks have participated in preparing the list of defaulters directly for the first time.

The EC earlier asked the commercial banks and NBFIs for updating their information about the loan defaulters who might be candidates for the next elections.

As part of the move, the EC had sent a list of elected MPs from 1973 to 2001 to them (banks and NBFIs) to prepare a list of possible loan-defaulters who are likely to be candidates for the next parliament and upazila elections.

According to the RPO, a person will be disqualified for the elections, if he or she is a loanee, other than of small loans for agricultural purposes, and has defaulted in repaying before fifteen days from the day of submission of nomination paper any loan or an installment thereof, taken by him or her from a bank or financial institution.

BBN/SI/SSR/AD-10November08-9:44 AM (BST)