Sick non-textile industries get exit facility

Apart from readymade garment and textile companies, government-Identified defaulted and sick/closed industrial entities with a principal loan amount of over Tk 50 lakh will now be able to avail of the exit facility to get out of the defaulter list by paying 2.5 per cent as a down payment in cash against the principal amount.

The Banking Regulation and Policy Department (BRPD) of Bangladesh Bank issued a circular on Wednesday detailing the prerequisites of the process.

It said the defaulted borrowers can apply to the bank by paying the down payment amount in cash within 90 days from the date of the circular’s issuance. Their applications will be ineligible after the deadline.

The loan can be repaid in instalments within a maximum of three years from the exit facility providing date.

However, if the borrowers want to repay the loan by selling the immovable property, they can repay the loan at once within three years.

However, in both cases, the exit facility will be cancelled if the payment is not made within the stipulated time, read the circular.

The loan should be shown as classified until the full debt is repaid within three years. The amount to be collected for the down payment should be adjusted with the filing of the interest waiver.

The board of directors of the banks can also waive the interest on sick industries as per two other circulars issued in April and May this year. The banks may charge interest at the maximum cost of funds rate on the loan balance after the interest is waived.

The bank must settle the defaulted borrower’s application within 45 days from the date the application is received. The loan can be paid off by selling the mortgaged property against the debt, through a tripartite agreement if the bank, customer and buyer are interested.

If there is any case against the loan, the bank and the borrower will have to take necessary measures to halt the case proceedings and settle within 90 days from the date of providing the exit facility.

However, if any condition of the facility is violated, all privileges under it will be annulled and the case against the customer will be restarted, the circular said.