BB relaxes loan repayment method for coronavirus

Bangladesh Bank has relaxed the loan repayment system considering the impact of coronavirus on trade and business.

According to a circular issued by the central bank, classification of loan will not be changed between January 1 and June 30 this year even if anyone failed to pay back the loan as per the schedule.

The 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 June 30 of 2020 and will be treated as it was from January 1, 2020, mentioned the BB circular.

But if the classification of the loan is improved, it could be upgraded by this time, it added.

Source: United News of Bangladesh