Loan moratorium ends with relaxed repayment facility | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Wednesday
June 11, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
WEDNESDAY, JUNE 11, 2025
Loan moratorium ends with relaxed repayment facility

Banking

TBS Report
31 January, 2021, 09:25 pm
Last modified: 31 January, 2021, 10:17 pm

Related News

  • Bangladesh repays $3.5b foreign debt in 10 months of FY25
  • Pakistan to remain engaged on historical issues, including apology for 1971 genocide, repayment of $4.5b: FS Jashim
  • Foreign loan repayment up 52%, disbursement down 17.47% in Jul-Oct
  • Govt's borrowing from savings tools lower than repayment
  • Peninsula Steel directors ordered to repay Tk193cr loan

Loan moratorium ends with relaxed repayment facility

The central bank issued a circular in this regard on Sunday

TBS Report
31 January, 2021, 09:25 pm
Last modified: 31 January, 2021, 10:17 pm
Representational image. Picture: Collected
Representational image. Picture: Collected

The loan moratorium facility to cushion the Covid-19 fallout ended on 1 January this year, resuming the classification of loans.  

The central bank's Banking Regulation and Policy Department (BRPD) issued a circular in this regard Sunday.

Due to the pandemic, borrowers did not have to repay loan installments from January to December 2020 and loan classification was paused.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Though the moratorium has ended, the Bangladesh Bank has relaxed the repayment of term loans.

Borrowers for term loans will get 50% extra time to repay the installments till January 1, 2021, said the central bank circular. But the extended period will not be more than two years, and the bank-client relationship will determine the extension.

For instance, a loan with a six-year repayment period finishes two years on 1 January 2021, and has four years for repayment. For it, the borrower now gets six years – the remaining four years plus another two years as 50% of the four years.         

Another loan with 10 years crosses five years of the repayment on 1 January 2021, and has five years for repayment. According to the central bank's circular, 50% of the remaining period is two-and-a-half years. Since the extension will not be more than two years, borrowers will not get seven-and-a-half years, instead, the client will have to repay the loan in seven years.     

Syed Mahbubur Rahman, former chairman of the Association of Bankers, Bangladesh and also the current managing director and CEO of Mutual Trust Bank Limited, welcomed the central bank's decision.

"This facility will help industry and service sectors turn around, shrugging off the pandemic-led challenges. The client-bank relationship, in availing the facility, will deter wilful defaulters from taking advantage," he noted.    

Rizwan Rahman, president of the Dhaka Chamber of Commerce & Industry (DCCI), welcomed the central bank's move. But he advocated for continuing the loan moratorium facility for the next six months.

"The pandemic is not over, and the fallouts are likely to prevail this year too. It will be convenient for us if the loan moratorium is extended," he added.

The business leader is especially in favour of extending the facility for the cottage, micro, small and medium enterprise sector. He said the facility for the sector should continue throughout 2021.

He thinks small and medium ventures should get more six months for repaying their installments.

In the first quarter of the current financial year (July-September), the amount of term loans disbursed to industries was about Tk15,500 crore – which is 30% less than the corresponding quarter of the previous year.

The central bank's circular further said credits other than the term loans will follow the existing policies and stimulus package guidelines.

Economy / Top News

Loan moratorium / repayment

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Chief Adviser Muhammad Yunus speaks at the Chatham House in London on 11 June 2025. Photo: CA Press Wing
    CA Yunus outlines challenges, opportunities facing Bangladesh at Chatham House
  • File Photo: TBS
    DGHS issues 11-point directive to prevent spread of Covid-19 in Bangladesh
  • A man in a car uses his mobile phone as members of law enfocement stand guard on a road after curfew, as protests against federal immigration sweeps continue, in downtown Los Angeles, California, US June 10, 2025. REUTERS/Leah Millis
    Trump wants to 'liberate' Los Angeles, residents say 'no thanks'

MOST VIEWED

  • Illustration: Duniya Jahan/ TBS
    Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon
  • A file photo of Bangladesh Bank Governor Dr Ahsan H Mansur. Photo: Collected
    'I have no relation with this': Ahsan Mansur debunks Joy’s allegations over daughter’s Dubai flat
  • Faiz Ahmad Tayeb. Photo: BSS
    Import duty on raw materials for e-bikes, lithium batteries reduced from 80% to 1% in some cases: Faiz Taiyeb
  • Screengrab from video shows a group of local youths forcing tourists to leave a tourist spot in Utmachhra area of Sylhet's Companiganj on Sunday, 8 June 2025, citing allegations of obscene activities and environmental damage
    Locals declare tourist spot in Sylhet 'closed', force visitors to leave
  • Shakil Ahmed. Photo: Collected
    DU student allegedly hangs himself following threats over old derogatory comment about Prophet on Facebook
  • Photo shows the Land Cruiser Prado car belonging to former member of parliament (MP) Anwarul Azim Anar found in Kushtia. Photo: TBS
    Luxury car of ex-AL MP Anar, who was killed in Kolkata, found in Kushtia

Related News

  • Bangladesh repays $3.5b foreign debt in 10 months of FY25
  • Pakistan to remain engaged on historical issues, including apology for 1971 genocide, repayment of $4.5b: FS Jashim
  • Foreign loan repayment up 52%, disbursement down 17.47% in Jul-Oct
  • Govt's borrowing from savings tools lower than repayment
  • Peninsula Steel directors ordered to repay Tk193cr loan

Features

Illustration: Duniya Jahan/ TBS

Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon

21h | Features
File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar

Dhaka: The city we never want to return to, but always do

2d | Features
Photo collage shows political posters in Bagerhat. Photos: Jannatul Naym Pieal

From Sheikh Dynasty to sibling rivalry: Bagerhat signals a turning tide in local politics

4d | Bangladesh
Illustration: TBS

Unbearable weight of the white coat: The mental health crisis in our medical colleges

6d | Panorama

More Videos from TBS

Foreign firm to draft merger plan for investment promotion agencies

Foreign firm to draft merger plan for investment promotion agencies

9m | TBS Insight
US-China London meeting ends as planned

US-China London meeting ends as planned

49m | TBS World
When will the heat wave subside?

When will the heat wave subside?

1h | TBS Today
Covid-19 testing to resume at hospitals amid rising infections

Covid-19 testing to resume at hospitals amid rising infections

2h | TBS Today
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net