Extend loan moratorium until June 30

Bangladesh’s apex trade body has requested the central bank to extend a moratorium on loan repayment until June 30 this year as businesses are still struggling to recover from the pandemic’s shock.

In a letter to the Bangladesh Bank on Sunday, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Md Jashim Uddin noted that most businesses would become defaulters if the loan classification facility was not extended.

“This will negatively affect the banking sector and the overall economy,” the letter reads.

In a notice last year, the Bangladesh Bank allowed banks to keep CMSME sector loans unclassified if the borrowers cleared 15 per cent of the overdue amount for the January-December period of 2021.

FBCCI arranged a meeting with district, metropolitan and women chambers to discuss the current economy and trade situation amid the Covid-19 on Saturday. The new covid variant has negatively impacted production and supply management, Jashim added.

In the letter, the FBCCI president mentioned that the government imposed restrictions to tackle the new variant. The businesses are operating with half the workforce. Besides, various countries have gone for lockdowns as their virus situations deteriorated. Raw material prices and freight charges went up in the international market, affecting the local market.

To resolve the problems, the leaders of all chambers demanded extending the loan moratorium facility. The FBCCI also agreed with the demand, Jashim said, urging BB to come forward to continue economic activities through assisting them amid the pandemic.