In a bid to save the scam-hit Farmers Bank Ltd from the liquidity crisis, the government and Bangladesh Bank have authorized four state-owned banks and one state-owned financial institution to inject Tk715 crore into the bank in exchange for 60% of its shares. But Bangladesh Bank has relaxed the three articles for the five institutions under article 121 that states the central bank can relax them in consultation with the government, when needed. On March 29, the government decided to inject the money into Farmers Bank, which has long been grappling with a number of financial anomalies. “We have already started reconstruction and reforms of Farmers Bank. The bailout will turn the bank into a semi-government bank as the five state-owned organizations will hold 60% of its shares,” said Md Ehsan Khasru, managing director of the bank.

Source: Dhaka Tribune May 09, 2018 19:07 UTC