Bangladesh Bank eases rules for borrowers to avoid defaulting
Borrowers would be able to avoid falling into the default zone by repaying 20 per cent of their loan installment amount as of June, Bangladesh Bank said yesterday.
The BB has relaxed its loan classification policy given the ongoing business slowdown.
Borrowers will have to give the portion of their loan installments by August this year, according to a central bank notice.
In March, the BB provided a repayment deferral support to borrowers to allow them to repay the loans based on the bank-customer relation. This helped them repay the outstanding installments by June.
Three categories of loans – term, demand and working capital – are eligible for the relaxed facility.
This means all borrowers in the banking sector would enjoy the new facility, except for the credit card debt, said a managing director of a bank.
In March last year, the Bangladesh Bank declared a loan moratorium facility for the banking sector, which was effective throughout last year.
Comments