Bangladesh Bank has once again moved to support businesses affected during the rule of the ousted Awami League government and the interim government, as well as those hit by the sharp rise in the US dollar exchange rate.
The central bank has allowed affected business entities to regularize their defaulted loans by depositing only 2 percent of the outstanding amount. The rescheduled loans may be repaid over a maximum period of 10 years.
Businesses that regularize their loans under the facility will also receive a two-year grace period at the initial stage. However, borrowers who previously regularized loans under earlier policy support schemes will not be eligible for the new facility.
Only borrowers whose loans turned default by March 31 this year will qualify for the opportunity. Interested businesses must apply to their respective banks by June 30.
Banks will settle the applications, which must be disposed of within three months of submission.
The Banking Regulation and Policy Department of the central bank issued a circular in this regard on Thursday, allowing defaulted business borrowers to reschedule their loans once again under policy support measures introduced during the interim government period.
According to the circular, the final decision on loan rescheduling will rest with the board of directors of the respective banks.
Borrowers will also be allowed to settle loans through one-time payment facilities, with a repayment period of one year. In such cases, banks will not need prior approval or no-objection clearance from Bangladesh Bank.
The central bank said applications must be resolved within three months of receipt. If the required down payment is made through cheque or any other financial instrument, the three-month period will be counted from the date of encashment.
The policy support facility will not become effective before the one-time payment amount is deposited with the bank.
The circular further said loans settled under the one-time payment facility must continue to be shown in the loan accounts and banks must maintain general provisions against those loans as per rules.
Banks will not be allowed to transfer previously maintained specific provisions to income accounts without actual recovery of the loans. However, part of the provisions may be transferred to maintain general provisions.
No fresh loan facilities can be provided to the concerned borrowers until the entire outstanding loan is fully repaid, except for their existing credit facilities.
Bd-Pratidin English/ AM
