Dhaka: Bangladesh Bank (BB) has announced a significant move to assist borrowers by allowing commercial banks to offer a special rescheduling facility for loans. This facility extends up to 10 years with a two-year grace period for borrowers whose loans are classified as of November 30. This initiative is part of a comprehensive government bailout package aimed at revitalizing struggling businesses and financial operations.
According to Bangladesh Sangbad Sangstha, the central bank issued a circular on Monday that relaxes existing regulations to support both classified and unclassified borrowers. To qualify for this rescheduling facility, borrowers are required to make a down payment of 2.0 percent of their outstanding loans. However, they are not permitted to use previously paid loan installments or parts thereof as this down payment when submitting their application.
The BB circular further elaborates that unclassified borrowers experiencing financial difficulties can avail themselves of this facility until December 31. They can benefit from the facility for a maximum of two years within the stipulated timeline. Additionally, the central bank has eased the special exit facility, enabling classified borrowers to change their loan status to unclassified upon exiting through the facility.
Moreover, the circular also allows classified borrowers to access non-funded facilities such as the opening of letters of credit under the exit policy. This measure is expected to provide much-needed relief and flexibility to borrowers in managing their financial commitments.