NGOs won't collect instalment for next 3-6 months

Non-governmental organisation (NGOs) and micro-finance institutions (MFIs) will suspend the collection of monthly instalment of their loans in the cyclone-affected areas for next three to six months.
This was decided at a meeting of Bangladesh Bank with the NGOs and MFIs at the central bank headquarters yesterday, where they announced fresh lending plans for the areas and requested the government to funnel more funds.
Bangladesh Bank Government Saleh Uddin Ahmed, also chairman of the Micro-credit Regulatory Authority (MRA), presided.
MRA is a regulatory body working under the central bank to monitor and control the micro-finance operations by a host of NGos and MFIs.
After the meeting, MRA Executive Vice-Chairman Mazharul Haque told reporters that the NGOs and MFIs would suspend collection of their loan instalment and strengthen the new loan-disbursement activities.
He said all the NGOs and MFIs agreed that the affected people now need financial support to come back to normal life and resume their normal business.
"So, they all emphasised taking a holistic view in supporting the cyclone-affected people."
He, however, said it was not decided in the meeting to write off the loans. "But if any NGO or MFI wants to do so, they can do that on their own."
Director of NGOs Federation in Bangladesh (NFB) Tajul Islam said the NGOs want to send their staff members to the cyclone-affected areas to resume loan-disbursement programme. But it should not mean that they are going to collect the loan instalments.
"First we'll identify the really affected people and then suspend the collection of monthly instalment," he said.
Islam pointed out that the local private creditors (Mohajans) are now active in the affected areas to do their business. "That's why NGOs need to resume their operations in those areas."
He said he NGOs will utilise their disaster-management fund in lending to the cyclone-stricken people.
Credit and Development Forum Executive Director Farid Uddin said there should be a coordinated effort to deal with the situation in the cyclone-affected areas.