Bangladesh Bank has decided not to immediately liquidate three non-bank financial institutions—GSP Finance, Prime Finance, and Bangladesh Industrial Finance Company (BIFC)—while proceeding with closure plans for six others. The decision was made at a board meeting chaired by Governor Ahsan H. Mansur, where the institutions were given three to six months to improve their financial indicators. The central bank had earlier initiated liquidation proceedings against nine NBFIs due to high default loans and failure to return deposits.

The nine institutions under scrutiny include FAS Finance, BIFC, Premier Leasing, Fareast Finance, GSP Finance, Prime Finance, Aviva Finance, Peoples Leasing, and International Leasing. Their default loans reportedly range between 75 and 98 percent, attributed to long-standing irregularities and weak management. Hearings on the liquidation process concluded last Sunday, after which the board approved conditional time extensions for the three firms.

Governor Mansur also stated that depositors of the nine distressed NBFIs will receive their principal amounts before Ramadan, with the government verbally approving around Tk 5,000 crore for repayments. No interest will be paid on these deposits.