Govt now mulls reconstructing People’s Leasing

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The central bank would inform the High Court in this regard

The government may backtrack on its decision of liquidating People’s Leasing and Financial Services (PLFS) as it now mulls reconstructing the company.    

Bangladesh Bank high official and finance ministry sources have hinted finding out new investors and transferring the liabilities to them as the issues of liquidation has already have negative impact on the country’s financial sector. 

Talking to Dhaka Tribune, sources at Bangladesh Bank and PLFS, seeking anonymity, mentioned name of Shamsul Alamin Group and two other groups as the possible investors. 

The central bank would inform the High Court in this regard, they said.

“The government wants to reconstruct the PLFS because the decision to liquidate it gave a negative signal to the financial sector,” said a Bangladesh Bank (BB) official, seeking anonymity. 

Shamsul Alamin Group and other two industrial groups were likely to buy the major share of the company, said the official. 

After the reconstruction, the new investors would rebrand the company with new name, he added.  

“The government wants to reconstruct PLSF instead of liquidation. A discussion is going on in this connection but no decision has yet been made,” Alamgir Shamsul Alamin, managing director of the group, told Dhaka Tribune. 

“It is an ailing company from which Proshanta Kumar Halder, also known as PK Halder, has taken out a large amount,” said Shamsul. 

“We will review the present status of the organization and then finial decision will be made,” he added.   

However, BB spokesperson Md Serajul Islam declined to comment on the issues as it was a sub judice matter.  

Three directors of Shamsul Alamin Group were in the board of the PLFS for ten years until 2015. The group was accused of being involved in the loan irregularities of the ailing NBFI, according to the central bank finding.  

Alamgir Shamsul Alamin, who is also president of the Real Estate and Housing Association of Bangladesh (REHAB), is the managing director of the business group.  

On June last year, the government directed the central bank to liquidate People’s Leasing and Financial Services (PLFS), a non-bank financial institution, due to deterioration of its financial health in the last several years.

On June 27 last year, the finance ministry instructed the central bank to shut the NBFI for its failure to improve its conditions. 

It was the first liquidation process in Bangladesh’s financial sector in line with the Financial Institutions Act, 1993 .