Home ›› 10 Aug 2020 ›› World Biz
Bangladesh bank has extended time for restructuring of loans to customers of financial institutions. From now on, defaulters of financial institutions will get twice as much time for debt restructuring.
A circular in this regard was issued by the Financial Institutions and Markets Department of Bangladesh Bank on Sunday (August 9).
The circular sent to the CEOs of all financial institutions operating in Bangladesh stated that in order to ensure that the existing Covid-19 situation, financial institutions can restructure at their own discretion by analyzing the financial consistency of the customer, the loan/lease can be extend up to 50%. Earlier, the deadline was 25 percent.
Bangladesh Leasing and Finance Companies Association (BLFC), an association of chief executives of non-bank financial institutions, proposed an increase in loan restructuring during a meeting with central bank governor Fazle Kabir on June 30 in view of the ongoing crisis. At that time, the central bank had promised to extend the time by 50 percent. In view of that assurance, the central bank has issued a circular on Sunday.
