The amount of defaulted bank loans in the country hit a record high of Tk 1.25 lakh crore, according to the latest data from Bangladesh Bank (BB) on Thursday.

The jump was reported amid the central bank’s recent move to ease the payment of loan repayments by heavy borrowers.

According to preliminary data from BB, the amount of delinquent loans increased by Tk 11,818 crore in the April to June quarter with one loan classified totaling Tk 1.25 lakh crore.

Banks have disbursed loans of Tk 1398592 crore till June 2022, of which Tk 125258 crore are declared in default. That means 8.96% of loans have been classified, which is the highest ever recorded in the country, officials familiar with the matter said.

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Three months ago, in the January-March quarter, loan defaults stood at Tk 113,440 crore.

Also, defaulted loans increased by Tk 26,063 crore from June 2021 to June 2022. In June 2021, the amount of defaulted loans was Tk 990,205 crore.

Economic analyst and former acting government adviser Dr AB Mirza Azizul Islam told UNB that if the special defaulter discount is not stopped, the default debt will not decrease.

“The situation has become such that defaulters now think that if I don’t repay the loan, I will get more discounts in the future. For this reason, as long as there is an exemption, this loan default amount will continue to increase,” he said.

Mirza Aziz said the only way to reduce delinquent loans is to stop the facility and take legal action.

“In reality, it is much more than Tk 1.25 lakh crore because some information is not added,” he noted.