Bangladesh is moving forward on its way to become a middle income country at a very sound pace. The nation has meanwhile graduated from least developed countries (LDC). Foreign currencies reserve is in a very healthy form due to huge sums of remittances being received from expatriate Bangladeshis without any investment from the state. Moreover, Prime Minister Sheikh Hasina's hectic efforts have transformed Bangladesh into a development role model.

Foreign currencies reserve is at this moment approximately 39 billion dollars. Nevertheless, it should be noted that currently the global market is functioning very slowly. For this reason export and import have gone down drastically. This is the main reason behind the high figure of foreign currencies reserve but it will steeply fall when normal situation returns after Covid 19.

Sheikh Hasina has meanwhile declared massive amounts of stimulus packages to sustain the country's economy but allegations show that a group of perpetrators are trying to misuse these packages. This phenomenon should be monitored very closely.

The government will have to stand on high alert so that humanitarian crisis does not jeopardize the ordinary people.However, economists have commented that the country's financial sector has got into a hostage plight due to loan scams, money laundering and financial rackets by a vicious syndicate.

BBC and Transparency International Bangladesh (TIB) have reported that 37 banks are most likely to fall into capital deficit if their top ten borrowers become loan defaulters.

Financial experts have blamed corruption, irregularities and political influence on the banking turf for this alarming scenario. Economists have further said that regulatory authorities like Bangladesh Bank and Finance Ministry have not been able to play their roles properly which is why the sum of defaulted loans has been mounting years after years.

Sheikh Hasina told the leaders of Bangladesh Association of Banks (BAB) in a recent program to make sure that all banks work properly. She added that some banks have become too weak.

Most of the state-owned and private banks have been affected with huge sums of defaulted loans. The magnitude of defaulted loans has exceeded 2 trillion taka including written off credits.

The sums of defaulted loans in Bangladesh's banking sector have more than doubled up during last five years. Defaulted loans have mounted by 133% in the meantime. Bad or irrecoverable loans amounted to 31 thousand 920 crore taka in 2013 whereas it soared to 74 thousand 300 crore taka in 2019.

Bangladesh Bank (BB) has not yet disclosed the names and particulars of the top loan borrowers. Economists and financial analysts have called upon the regulatory authorities including Bangladesh Bank frequently to expose the facts and figures associated with the top loan borrowers to ascertain the true extent of defaulted loans but Bangladesh Bank has been silent over this issue.

The Asian Age published a report titled "Soaring defaulted loans paralyze banks: Experts for unfolding top borrowers' information" on 1 September 2019.

International Monetary Fund (IMF) and some other foreign organizations have also expressed concern over the banking disarray in Bangladesh.

Economists have expressed the opinion that there is no good governance and accountability in the country's banking sector. Allegedly influential loan defaulters run Bangladesh Bank which is why the central bank cannot execute any strong measures to recover defaulted loans. For this reason financial scams and corruption are going on without cease in the banking arena of the country. Powerful loan scammers often escape through the loopholes of banking regulations by getting stay order from courts and thus they skip the loan defaulter status.

Enormous figures of defaulted loans and mysterious loans have put a number of banks in capital deficit and liquidity crisis. Mysterious loans stand for debts which are paid to inexperienced and less known enterprises without sufficient mortgages. Most of the banks have failed to recover their defaulted loans. Financial experts have said that political influence, nepotism and lack of good governance are responsible for banking scams and financial turmoil in Bangladesh. Banking sources have stated that most of the loan scammers got bank loans through fake mortgages.

On the other hand, trade deficit has reached 8.22 billion US dollars which is highest ever in Bangladesh's history. Import costs have by far crossed export earnings.

Bangladesh's economy, like other countries, is passing a critical time due to the outbreak of coronavirus pandemic. The country's eco