BB extends relaxed loan repayment until Sept 30

Bangladesh Bank has further extended its relaxed loan repayment system until September 30 taking into consideration the impact of coronavirus on the country’s trade and business.

According to a circular issued by the central bank on Monday (June 15), the classification of loan will not be changed between January 1 and September 30 this year even if anyone failed to pay back the loan as per the schedule.

Earlier, the facilities were applicable until June 30 as per the circular issued on March 19 this year.

The new circular, issued by its Banking Regulation and Policy Department (BRPD), said businesses in Bangladesh were affected like other parts in the globe due to the coronavirus outbreak.

It is assumed that many loan recipients may not be able to repay their loans as per the schedule, it said.

In such a situation, there is an apprehension that the trade and businesses might be affected and the overall employment might be impeded.

Considering the situation, this was decided that the classification of any loan will remain unchanged until September 30 and will be treated as it was from January 1, mentioned the BB circular.

The existing policy on calculating interest or profit on loans or investments during the benefit period will remain in force.

However, no penalty interest or additional fee (whatever the name may be) may be levied on the loan or investment at that time.

But if the classification of the loan is improved, it could be upgraded by this time, it added.