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Clients who have used the loan until March of this year will get the benefit of the policy of deferring the interest on the loan for two months due to Corona. This benefit will not apply to newly disbursed loans beginning April 1. The Bank Policy and Banking Regulation Department of the Bank of Bangladesh issued a circular on this matter on Monday.
Earlier on Sunday, Bangladesh Bank ordered commercial banks to suspend interest on all types of loans for two months due to the crown. According to the instructions, the interest for April and May will be suspended. However, the circular did not specify how long this service would be applicable in the case of disbursed loans. The central bank has issued another new circular clarifying the issue as there is a risk of creating ambiguity among borrowers.
The circular says that, considering the commercial situation caused by the corona virus, the bank was ordered to transfer all types of loans as interest-free loans from April 1 to May 31. In addition, you have been instructed that the interest on the loan transferred as locked cannot be recovered until further instructions are given and this interest cannot be transferred to the income sector either. It is now clarified that the directive to suspend interest for two months on the loan balance based on March 31, 2020 will apply. This instruction will not apply to newly disbursed loans from April 1, 2020. The directive has been issued under the powers conferred by Section 45 of the Banking Companies Law. This instruction will be effective immediately.
Earlier in the day, a circular Sunday said that various financial incentive packages, including low-interest loans through the banking system, have been announced to revive and keep the country’s economic activities afloat in the face of the possible economic impact of the outbreak. of coronavirus. Now it has been decided to suspend interest for two months, from April 1 to May 31, on all types of loans or investments. Customers cannot charge interest until further instructions are received. Such interest cannot be transferred to the bank’s income sector.
If a bank has already transferred interest on a loan to the income sector, it must be adjusted through the reserve entry. The adjustment of the interest retained as blocked will be reported later.
Ziadul Islam
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