Defaulters get extension for one-time-exit

The Bangladesh Bank has extended time for one-time-exit or rescheduling of default loans until 31 December 2021.

The central bank issued the directive in a circular published on Monday.

The directive said considering the prolonged phase of the second wave of Covid-19, the scope for loan rescheduling has been extended for those who earlier got the facility for one-time-exit. 

Earlier, on 21 September, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) called on the central bank to extend the loan payment time for one year during a meeting with the Governor Fazle Kabir. 

The latest directive came considering the ready-made garment exporters' appeal.

In a letter to the Bangladesh Bank governor, the BGMEA said that many failed to pay back their loans during the Covid pandemic despite getting a one-time-exit facility for a year.  

Given the circumstances, the ready-made garment exporters' association urged the central bank for further extension of another year.

On 16 May 2019, the Bangladesh Bank issued a special circular, which allowed the defaulters to pay back their loans at only 2% down payment and a grace period of one year with a repayment of loans in 10 years.

The directive further mentioned, once the one-time-exit and loan rescheduling facility is in effect, lawsuits against clients in this regard will be stayed. 

Later, if any client violates any condition of the facility, it will be revoked and the cases against them will continue, it added.