BB may launch easy repayment facility for businesses

The Bangladesh Bank is likely to introduce an easy loan repayment facility in response to a recent demand raised by businessmen, but bankers are strongly against this.

The possibility was discussed at a meeting of bankers at the central bank headquarters on Thursday.

Bangladesh Bank Governor Fazle Kabir presided over the meeting. Selim RF Hussain, chairman of the Association of Bankers, Bangladesh and BRAC Bank managing director, as well as managing directors and chief executive officers of other banks attended the meeting.

This was the last bankers’ meeting that Fazle Kabir attended as his tenure is going to end on July 3.

After the meeting, Bangladesh Bank Executive Director and Spokesperson Md Serajul Islam told The Business Post the meeting had discussed the easy loan repayment facility demanded by businessmen.

He said a group of bank managing directors opposed the idea.

“But another group said the central bank should provide the facility amid the challenging period in the country’s economy,” he said.

Serajul also said the central bank had taken bankers’ opinions but had not made a decision on the matter.

However, three managing directors attending the meeting told The Business Post almost all managing directors and CEOs expressed their disapproval of the idea, saying businessmen always want facilities regardless of whether the economy is doing good or bad.

Selim told journalists the meeting had discussed the present situation of the economy and the banking sector.

He said the meeting had discussed the easy loan repayment facility and the Bangladesh Bank would issue a circular in this regard soon.

The Federation of Bangladesh Chambers of Commerce and Industry on May 31 urged the Bangladesh Bank to introduce a fresh loan moratorium facility till December this year.

It said the facility was needed because of the pressure on supply chains caused by economic recovery from the Covid-19 pandemic and also the ongoing volatility in the global economy.

The previous facility, first introduced in mid-2020 amid the pandemic, ended on December 31 last year.

On May 31, businessmen also urged the central bank to introduce a new loan rescheduling facility with only a 2 per cent down payment.

The BRAC Bank managing director said Thursday’s meeting had also discussed the possibility to build a hospital and a club for bankers in the capital.

Responding to a question, he said the forex market was comparatively stable now and would become more stable within the next month.