Bangladesh Bank has further extended its relaxed conditions for loan repayment till December 31 taking into consideration the impact of coronavirus on the country’s trade and business.
According to a circular issued by the central bank on Monday, classification of loan will not be changed between January 1 and December 31 this year even if anyone failed to pay back the loan as per the schedule.
Earlier, the facilities were applicable until June 30 and then extended until September 30 through a similar circular issued on June 15 this year.
The new circular, issued by its Banking Regulation and Policy Department (BRPD), said businesses in Bangladesh were affected like other parts in the globe due to the coronavirus outbreak.
It is assumed that many loan recipients may not be able to repay their loans as per the schedule, it said.
In such a situation, there is an apprehension that the trade and businesses might be affected and the overall employment might be impeded.
Considering the situation, this was decided that the classification of any loan will remain unchanged until December 31 and will be treated as it was from January 1, mentioned the BB circular.
But if the classification of the loan is improved, it could be upgraded by this time, it added.
The directive was issued in a circular sent to the chief executives of all scheduled banks.
According to the new guidelines, the borrower will not be considered as a defaulter even if he does not pay any installment from January 1 to December 31 this year.
No penalty, interest or additional fee (whatever the name may be) may be levied on the loan / investment during this period.
Rational rebate facility can be provided by the bank to encourage the customer to repay the term loan (including short term agricultural loan and micro loan) in installments voluntarily and to repay the loan, said the BB circular.
Source: United News of Bangladesh