NBFIs allowed taking unrealised interests into profit

Bangladesh Bank will allow the non-bank financial institutions (NBFIs) to take unrealised interests into profit, if borrowers pay only 25 per cent of their payable amounts of the current year.

The NBFIs will have to keep an additional 2 per cent provision that was asked to keep against moratorium loans last year, said the central bank in a notice on Sunday.

NBFIs won’t enjoy the facility, if it fails to recover the installments of loans by this year.

In September this year, the central bank had said that borrowers will not be classified as defaulters if they pay only 25 per cent of their installments by December this year.

The central bank had also provided the same facility for banks as well on December 15.

A high official of the central bank said that the step was taken to maintain the momentum of the ongoing economic activities after the adverse impacts Covid-19 pandemic.