FBCCI wants same facility for small, large defaulters

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has requested Bangladesh Bank (BB) to provide an equal loan reschedule and restructuring facility for all types of defaulters.

It has asked for a maximum of maximum eight years, including the grace period, for repayment of the term, continuous and demand loans.

It also proposed to keep the down payment rate at 2.5 per cent for both small and large defaulters because everyone has been affected equally by the adverse impacts of the Covid-19 pandemic and the Russia-Ukraine war.

The apex trade body voiced its demand in a letter, signed by FBCCI President Md Jashim Uddin, sent to the central bank’s Governor Abdur Rouf Talukder on Thursday.

Through a circular last Monday, BB relaxed the policy for rescheduling defaulted loans, permitting defaulters to repay term loans over a maximum period of eight years. Until now, it was a two-year period.

Defaulters will also be allowed to reschedule their non-performing loans four times — totalling 29 years. Previously, they could do that three times.

Now, FBCCI is demanding eight years in all four phases — a total of 32 years.

In the letter, the FBCCI president said the central bank’s decision will help stabilise the financial sector amid the global economic crisis.

But the difference in maximum repayment periods for the term, continuous and demand loans between the small borrowers and large borrowers appears a bit unfair. “We think the facility should be equal for all borrowers as all have been affected equally.”

Jashim expressed gratitude towards the central bank, saying it has been giving regular financial and policy support to businesses to recover from the pandemic shock and helped them flourish again. He hoped this will continue.

BB has extended the loan moratorium facility for all borrowers until December this year. But it has become tough for businesses to avail that because of the additional pressure created by the current global economic crisis, he said.

Under the circumstances, he urged the BB to relax the conditions, and fix a maximum 15 per cent minimum instalment amount for the cottage, micro, small and medium enterprises (CMSME) and agriculture sector and a maximum of 25 per cent for large industries.