Home ›› 12 May 2020 ›› World Biz
Bangladesh Bank has directed the scheduled banks to give loans to the customers of SME sector without rating under the incentive package announced by the Prime Minister to combat the coronavirus outbreak.
A circular issued on Tuesday by the central bank's SME and Special Programmes Department has been sent to the managing directors and chief executives of all scheduled banks in the country.
According to the circular, due to the outbreak of Covid-19, the official activities were limited and the bank was disrupting the supply of necessary documents by the borrower concerned to complete the rating activities of the customer through Internal Credit Risk Rating System (ICRRS). In this context, it has become a time-consuming job to perform the work of ICRRS.
In this context, in order to resume their production or service activities under the medium industry, the loan or investment facility can be provided by the bank only without completing the rating activities as per the requirements in the case of providing loan / investment facility under the package in question. However, each bank will select customers on the basis of banker-customer relationship by analyzing the credit risk under the existing practice in place.
However, as per the instructions issued earlier, the defaulting borrower or investor will not be eligible for loan or investment facility under this package. Also, if any loan or investment of a recipient institution is rescheduled more than three times after it is declared bad or classified, such loan defaulter or investor will also not get loan or investment facility under this package.
This instruction will be effective immediately, mentioned in the notification.
sr/wi/teb
