The Bangladesh Bank has extended loan repayment flexibility to large industries to help them tackle a rise in production costs, amid a global economic crisis triggered by the Russia-Ukraine war.
The Bangladesh Bank on Sunday issued a notice in this regard, stating that large borrowers must pay 50 per cent of their payable installments for term loans within the October-December quarter of 2022, instead of the existing 75 per cent, to avoid falling into the defaulter category.
This move came in response to the Federation of Bangladesh Chambers of Commerce and Industry’s (FBCCI) push for a relaxed loan classification policy till March next year, insiders say.
The country’s top business forum on December 12 had requested the central bank to extend the loan moratorium till June 30 next year as they are still suffering due to the global economic crisis created by the Covid-19 pandemic and Russia invasion of Ukraine.
Central bank officials said the regulator has taken such a move to keep economic activities smooth by easing the loan repayment process.
The unpaid portion of the loans, payable in the April to December period this year, will be added to the next year’s payable installments, and the installment sizes would be adjusted accordingly, the Bangladesh Bank notice read.
This moratorium was first introduced in March 2020 amid the pandemic, enabling borrowers to avoid having their loans classified. The facility was extended several times till December 31, 2021.
