BB relaxes loan repayment policy for sick, non-textile industries

The Bangladesh Bank (BB) relaxed loan repayment policy for sick and non-textile industries enlisted and identified by the industries ministry.

Under the new policy, beleaguered businesses can now refund their loans above Tk50 lakh on easy conditions.

The Bangladesh Bank issued a circular in this regard on Monday relaxing two sections of the circular no-18 issued by the regulator’s Banking Regulation and Policy Department (BRPD) last year.

The central bank’s directive will be effective immediately, said the BB circular.

According to the new circular, in case of waiving interest for the industries, banks will be able to

charge interest at the maximum cost of funds rate on the new loan balance.

However, while imposing the interest, banks may, at their own discretion, decide to relax the cost of funds in the areas mentioned in the memorandum issued by the Finance Division of the Ministry of Finance on February 12, 2008, it said.

The central bank also said the borrower has to pay the required amount in cash for the down payment and submit an application to the bank concerned by June 30, 2023, under the new policy.

However, if the borrower fails to submit the application within the stipulated period, their application will not be acceptable, according to the latest circular.