Loan-defaulter made Bangladesh central bank chief; Jamaat trains guns on govt

The appointment of Mostaqur Rahman as the Governor of Bangladesh Bank, the country's central bank, has set off a firestorm, with Jamaat-e-Islami chief and Opposition leader Shafiqur Rahman attacking the Tarique Rahman-led government. The abrupt end to the tenure of Ahsan Habib Mansur, an appointee of the Muhammad Yunus-led interim regime, and Rahman's appointment, was described by the Jamaat Ameer as "the formal beginning of mob culture backed by the current government".

"I have not resigned, nor have I been removed. I saw it in the media, so I am going home," Mansur told reporters on Wednesday as he left the Bangladesh Bank headquarters wading through a mob, reported The Daily Star.

Mostaqur's appointment marks a break with tradition for Bangladesh, as previously, all appointments to the top post at Bangladesh Bank had been practically reserved for central bankers, economists or senior civil servants. Mostaqur is a businessman within Bangladesh's extensive garment sector, with no experience of banking to speak of. And he brings with him a history of defaulting on loans.

But what has made Mostaqur's appointment a sore point for many in Bangladesh, is the fact he was brought in after the unceremonious dismissal of Mansur, a respected economist who stabilised the country's currency and propped up its foreign currency reserves in the chaotic months that followed the ouster of the Sheikh-Hasina-led Awami League government.

He was dismissed prior to the completion of his term in 2028, and by his own admission, he learnt of his removal, not through official channels, but through TV news bulletins.

WHO IS BANGLADESH BANK CHIEF MOSTAQUR RAHMAN?

In a country where the central bank's reins are usually only handed to bankers, economists and civil servants with decades of relevant experience, Mostaqur Rahman stands out as a glaring exception.

According to a report by The Daily Star, Mostaqur is a cost and management accountant (CMA) by training, and a garment entrepreneur and businessman by profession. He currently serves as the managing director of a company named, Hera Sweaters Ltd.

He served on the BNP's central election steering committee for the February 12 Bangladesh national polls, and is a member of the Real Estate and Housing Association of Bangladesh, Association of Travel Agents of Bangladesh, and the Dhaka Chamber of Commerce and Industry, and has served on several key committees.

He has also worked closely with regulators, including Bangladesh Bank and Chittagong Stock Exchange Ltd, and chaired the Bangladesh Garment Manufacturers and Exporters Association's (BGMEA) standing committee on Bangladesh Bank.

WHY IS MOSATQUR'S APPOINTMENT AS BANGLADESH BANK GOVERNOR SO CONTROVERSIAL?

What makes the appointment of Mostaqur Rahman as Bangladesh Bank Governor by the Tarique Rahman-led BNP Government controversial are two reasons.

First, the new chief of the country's most important financial institution is someone with a history of defaulting on loans.

According to a report by The Daily Star, a private lender called Mutual Trust Bank rescheduled Tk 89 crore in stressed loans for Hera Sweaters Ltd, owned by Mostaqur Rahman, months before his appointment as governor of Bangladesh Bank. The loans were restructured in December under the central bank’s special rescheduling policy, granting a 10-year repayment period with a two-year grace period, instead of the 15 years sought by the company.

At least three managing directors of commercial banks, speaking anonymously to The Daily Star, questioned the appointment. One executive said, "How can someone who rescheduled loans for his own company under special terms work in the interest of the country’s banks?"

"After he [Mostaqur Rahman] was appointed governor, his name surfaced on social media in connection with a defaulted loan. Hera Sweaters, under his management, had failed to repay a Tk 860 million loan from Mutual Trust Bank (MTB) on schedule," reported BDNews24.

"Appointing a garment industrialist and BGMEA standing committee chair as central bank governor sends the wrong signal. Regardless of his experience, the conflict of interest is obvious. How can Bangladesh Bank remain independent if it is led by an active business figure from a sector it must regulate," asked Deen Islam, a former professor of economics at Dhaka University, on Facebook.

Second, are the circumstances surrounding his appointment. Mostaqur was given the post only after the shock ouster of his predecessor, Ahsan Habib Mansur, reported The Daily Star.

Mansur's dismissal was preceded by protests from a section of officials demanding his resignation, alleging his "autocratic behaviour". Mansur, in a press conference, termed the protest a "conspiracy" by a vested quarter, and left the premises of Bangladesh Bank.

Following this, the Financial Institutions Division cancelled the remainder of Mansur's term, which had originally been scheduled to conclude in August 2028, less than 18 months into his four-year term after his appointment in 2024.

WHAT DID JAMAAT CHIEF SHAFIQUR RAHMAN HAVE TO SAY ABOUT MOSTAQUR'S APPOINTMENT?

Following Mostaqur's appointment, Bangladesh Jamaat-e-Islami Ameer Shafiqur Rahman wrote on Facebook on Thursday that the situation in Bangladesh Bank was "the formal beginning of mob culture backed by the current government".

Describing the situation as "unfortunate and completely unacceptable", he criticised the removal of Mansur, writing that, "No one has the right to humiliate respected figures such as the Governor of Bangladesh Bank and his advisers in this manner."

He warned that at a time when the country's economy was still plagued by several issues, "such unwanted actions to continue at a critically important institution like Bangladesh Bank will destroy whatever remains of the economy".

He then called for all "sections of society, regardless of political affiliation", to protest against what he termed "disorder", and warned that "if it [the BNP-led Bangladesh government] truly wishes to build a democratic and discrimination-free Bangladesh, these activities must be stopped immediately. At the same time, appointments to key government positions must be ensured on the basis of merit, not party loyalty."

WHY AHSAN MANSUR'S DISMISSAL CAME AS SURPRISE FOR MANY IN BANGLADESH?

Ahsan Mansur's abrupt dismissal as Governor of Bangladesh Bank has proved to be a sore point for many in the country. A highly respected economist with 27 years of experience working for institutions like the IMF, Mansur was handed the reins to Bangladesh's central bank at a critical point of time. That was in 2024 after the chaotic ouster of Sheikh Hasina and her Awami League government.

According to a Daily Star report, when Mansur assumed office, the Bangladesh Bank's gross foreign exchange reserves were $25.92 billion, and reserves as per the BPM6 count were $20 billion. By the time he stepped down on Wednesday, gross foreign exchange reserves had risen to $35.04 billion, while the amount was $30.3 billion as per the BPM6 count. Mansur was also able to stabilise the Bangladesh Taka at 122.20 per Dollar, and adopted monetary policy that reduced Bangladesh's inflation from 10.49% in 2024 to 8.58% in January 2026.

"Ahsan H Mansur took charge of Bangladesh Bank at a moment when the system was under acute strain... Confidence in the banking system, both at home and abroad, was fragile. Over the next eighteen months, the trajectory changed," wrote Dhaka-based HSBC director Shahir Chowdhury.

"Which is why it is deeply disappointing to see someone of that experience and evidential track record not allowed to continue his tenure," added Chowdhury.

Mansur's dismissal thus elicited sharp critiques from many within Bangladesh. Alongside Shafiqur Rahman, NCP leader Nahid Islam wrote in a Facebook post that the BNP government has opened the door to plundering in the financial sector by removing Ahsan H Mansur from the post of Governor of Bangladesh Bank. He wrote, "From the outset of assuming office, Ahsan H Mansur achieved considerable success in restoring discipline to the financial sector..."

Referring to the appointment of Mostaqur, he wrote: "There is no scope to believe that the country’s highest banking authority and financial sector will remain safe in the hands of such an unethical beneficiary businessman. This clearly demonstrates that the government intends to arrange fresh plunder in the banking sector and financial arena, similar to the fascist era."

- Ends

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