Japan International Cooperation Agency (Jica) is seeking Bangladesh's loan repayment plan as the country owes Japan $10.44 billion. A three-member Jica delegation is scheduled to visit Bangladesh from 15 to 21 May to evaluate credit risk management, according to The Business Standard. Ahead of their visit, the agency sent a letter with a questionnaire to the Planning Division on 30 April, demanding clarity on the government's financial strategy. The Japanese agency is particularly interested in whether there is any realistic agenda and timetable to implement structural reforms and which reforms are seen as most critical for sustaining growth.
Bangladesh Employers' Federation president has launched a scathing critique of the country's banking policies, claiming that 5 decades of government policy have favoured loan defaulters. Speaking at a seminar titled "The Potential of Bangladesh's RMG Sector: The Way Forward," organized by the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) during the Global Sourcing Expo 2025 at the Bangladesh–China Friendship Exhibition Centre in Purbachal, Ehsan questioned the government's approach. "Does it mean that the government encourages bank defaults?" he asked, highlighting concerns about the current regulatory framework. According to The Business Standard, Ehsan, who is also a garment industry owner, emphasized that "Banking policies should be formulated to support good borrowers."
Jica's evaluation will focus on critical structural reforms needed to address Bangladesh's mounting debt crisis. The agency is questioning whether the government considers alternate scenarios for growth that depend on pace and vigour of reform effort and if pressure for a wider fiscal deficit emerges in case of low reform or weak growth scenario. This assessment comes amid growing international concern about Bangladesh's ability to service its foreign debt obligations and implement necessary economic reforms to ensure sustainable growth.
IFIC Bank Managing Director Syed Mansur Mustafa supported the call for stricter loan discipline, stating that businesses which take loans must repay them. He warned that when some borrowers default, the pressure falls on others, highlighting the systemic impact of non-performing loans on the broader banking sector. The banking executive's comments underscore growing concerns within the financial sector about the need for more robust loan recovery mechanisms and borrower accountability measures, particularly as international lenders like Jica scrutinize Bangladesh's credit management practices.
The banking crisis discussions coincided with broader concerns about Bangladesh's key economic sectors. BKMEA President Mohammad Hatem warned that the country's apparel industry may face a crisis similar to the one previously seen in the jute sector due to recent labour law amendments. The seminar, held as part of the Global Sourcing Expo 2025, brought together key stakeholders to discuss the future potential and challenges of Bangladesh's ready-made garment sector, which remains a crucial pillar of the country's export economy and debt servicing capacity.