Wednesday, April 24, 2024
The Bangladesh Bank on Wednesday introduced a fresh loan moratorium facility for the industrial, cottage, micro, small and medium enterprises (CMSME) and agriculture sectors as the country’s business faces various challenges at present.
Due to supply chain disruption created by the Russia-Ukraine war, the increasing trend of covid-19 infection and floods in the country’s north and north-eastern areas, businesses face challenges and so this facility was given. The Banking Regulation and Policy Department (BRPD) of the central bank issued a circular in this regard on Wednesday.
The central bank has given this facility on the condition of repaying the loan instalments in different steps from April to December this year. Bangladesh Bank also has given special facilities for the agriculture and CMSME sector in the flooded areas.
The circular stated that in case of repayment of loan instalment, no penalty interest or additional fee can be charged on the benefited loan.
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on May 31 urged the Bangladesh Bank to introduce a fresh loan moratorium facility till December this year, thanks to the pressure on the supply chain brought by the economic recovery from the Covid-19 pandemic and ongoing volatility of the global economy.
The previous loans moratorium facility for borrowers, which was first introduced in mid-2020 amid the pandemic, ended on December 31 of last year.
Under the moratorium facility, borrowers were not recorded as defaulters even if they failed to pay any instalments in 2020.
In 2021, borrowers to remain out of default needed to pay just 15 per cent of their scheduled instalments.
