Special window for loan rescheduling to close after Sept
The central bank will not give consent to special loan rescheduling proposals past this month as some bad borrowers have been found misusing the facility.
The decision was conveyed yesterday in a meeting with chief executives of all banks.
In light of the political turmoil, the central bank in December 2013 relaxed its policy and allowed banks to reschedule loans, provided they took its approval.
That facility expired in June last year, but banks continued to send loan rescheduling proposals to the central bank, which it approved.
“In the last several months, we have given consent to loan rescheduling for 600 to 700 institutions on special consideration,” said Bangladesh Bank Governor Atiur Rahman at the meeting.
“At present, there is no political instability in the country. The economy is dynamic. So this is the proper time to stop rescheduling loans on special consideration.”
From now, rescheduling must be done as per the central bank's original policy, he said.
Many of the bad borrowers tell banks to send the proposals to the BB and they would get the green light from the regulator through persuasion, said a chief executive of a private bank.
On the other hand, the borrowers tell the BB that it should give consent to their loan rescheduling proposals as the bank boards had already approved them.
“Such double-dealing has to be stopped now,” said a high official of the central bank at the meeting.
Meanwhile, the BB will organise a fair for banks at the Bangla Academy premises in the first week of November and all financial institutions have been asked to participate in it.
The banks will showcase their products, job and investment facilities and so on at the fair.
Rahman said the central bank has planned to hold a national banking festival for the first time in the country with a vow to make the youths bank-oriented.
He also instructed banks to introduce two new products: loans to girl students in rural areas to buy bicycles to go to school/college; flat loan scheme for the helpless freedom fighters and government and autonomous bodies.
Comments