[ad_1]
Due to the coronavirus epidemic, another round of special benefits has been extended for bank borrowers. Even if a borrower defaults on the loan by December 31, they will not appear on the delinquent list. Until now, this facility was available until September 30.
The Banking Policy and Regulation Department of the Bangladesh Bank issued a notice in this regard on Monday.
Advertising
According to the new guidelines, the borrower will not be considered delinquent even if he does not pay any installments from January 1 to December 31 of this year. No additional penalties, interest or fees (whatever the name) may be imposed on the loan / investment during this period.
The circular said that the central bank had granted special concessions on debt classification considering the negative impact of the crown on the country’s economy. Covid-19 has affected most sectors of the economy and many industries, services and companies are unable to carry out their normal activities due to the risk of prolonging its negative impact.
Given this situation, and in order to minimize the negative impact of COVID-19 on the borrower’s business, a policy has been formulated to determine and classify the loan repayment schedule.
According to the new Bangladesh Bank guidelines, the loan / investment classification which was on January 1, the loan / investment cannot be classified in the opposite direction until December 31. However, if the class quality of a loan / investment improves, it can be classified accordingly.
The bank can provide a rational repayment mechanism for the purpose of voluntarily repaying the term loan (including short-term agricultural loan and microcredit) by any client and encouraging the client in question to repay the current and requested loan. The necessary instructions will be given later on the transfer of interest to the interest income sector on extended loans for the repayment of the installments and the maintenance of the provision against the loan.
[ad_2]
