Merchants will have an additional two years to repay the loan.

Bangladesh Bank has clearly stated that the notice period that no loan can be in default is not extended if the loan installment is not paid. However, merchants and entrepreneurs have received different benefits to repay their loans. With the new facility, merchants will have the opportunity to repay their loans for up to two years. However, this benefit will not be available for loans disbursed under incentives and loans in progress. Bangladesh Bank has issued a notice in this regard on Sunday.

The notification said that to keep the negative impact of the corona virus on the economy at a tolerable level, a deferral facility was granted for all types of debt classification from January to December last year. Now it has been decided not to increase this facility as of January 1 of this year. However, to facilitate repayment of loan installments, a maximum of 50 percent of the remaining term of the term loan can only be extended based on the relationship between the bank and the customer. The term extended in this way will not exceed two years. Taking into account the effect of the crown and the amount of arrears, such facility can be granted only in the case of existing unclassified and regular loans as of January 1. In addition, you have been asked to follow existing policies for the recovery of other loans and the relevant policies for the recovery of loans disbursed under various incentive packages.

Concerned people said that now that the special facility has been lifted, everyone has to pay the fee under the above rules. However, extending the loan repayment period based on the bank-customer relationship will benefit merchants. Under the new facility, merchants will receive their arrears and half of that period. However, Bangladesh Bank has said that this additional period cannot exceed two years. For example, if a merchant takes a loan of Rs 100 million over a six-year period and has already repaid Rs 75 million in 20 quarterly installments over five years, the normal amount will be repaid in four interest-free installments. .

With the new facility, the merchant will now have an additional one and a half years, ie six months, to pay the remaining Tk 15 million rupees. ঐ The merchant will now have the opportunity to repay the remaining loan in six installments in a year and a half or quarterly. Again, if a merchant’s arrears are five years, he will receive an additional two years with five years. Because it cannot be extended for more than two years. Due to this ease, even if the income of the business organizations decreases during the Crown period, they will get some relief in repaying the loan.

Mahbubur Rahman, managing director and chief executive officer of Mutual Trust Bank, said the new rules would be good for everyone. Traders will make a lot of profit. Again, those who want to take advantage of the bank illegally will not be able to do so. Banks will also be in a convenient position. Think that the new decision has been based on these considerations.

To deal with the damaging effects of the corona virus on the economy, borrowers will have the opportunity to remain in default in 2020 without having to repay their loans. In March last year, the Bank of Bangladesh issued a notice in this regard stating that no one can be in default even if no one pays the January-June fee. The two-point directive was subsequently extended until December. As a result, the term of the unpaid loan is automatically increased. In banking terms, this is called the “deferral mechanism”. This facility was granted last year for both term capital loans and term loans. And with this ease, many clients who can pay the loan are not paying it either. And that is why the bankers were in a strong position not to extend the profit period. This was reflected in the meeting of the bank’s CEOs with the Governor of the Bank of Bangladesh last Wednesday.

Business leaders are known to have demanded that the Bangladesh Bank and higher levels of government extend the duration of these special benefits for another six months last year. He did not respond and asked to increase this facility for three months. However, the Bangladesh Bank decided not to extend the deadline by rejecting those demands.

Ittefaq / ZHD