Interim government in Bangladesh is preparing a roadmap to recover Tk 873 crore in funds from the Bangladesh Climate Change Trust (BCCT) that have been stuck in Padma Bank since 2016. Representatives from multiple ministries are meeting with Padma Bank officials to develop a recovery plan, which will also address other government funds held up at the troubled bank.
BCCT initially invested Tk 536 crore in what was then Farmers Bank in 2015. However, only Tk 74 crore was repaid, and the remaining funds, now totaling Tk 873.82 crore with accrued interest, were converted to preference shares by Padma Bank without BCCT’s consent in January 2023. Despite requests from BCCT for advice on potential legal action, no measures were taken. Padma Bank, plagued by liquidity issues and irregularities, has continued to receive government investments, partly due to political pressure.
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