Loan time extension facilities of NBFIs extended
Earlier, they were allowed to extend time of term loan or lease facilities by 25 percent of remaining time of maturity
Non-bank financial institutions (NBFIs) can now extend time of existing term loan or lease facilities by 50 percent of remaining time of maturity. The Bangladesh Bank has brought this change considering the reality of the Covid-19 pandemic.
The department of financial institution and market of the central bank issued a circular in this regard on Sunday.
Earlier, the NBFIs were allowed to extend time of term loan or lease facilities by 25 percent of remaining time of maturity.
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According to the guidelines of the central bank issued on December 29, 2015, financial institutions can extend time of those loan or lease's status with standard or special mention account (SMA), immediate past status of being default.
The central bank recently reduced the cash reserve ratio (CRR) by 100 basis points to 1.5 percent with an aim to ease the liquidity pressure on NBFIs amid the pandemic.
At the same time, the statutory liquidity ratio (SLR) for them has been increased to 3.5 percent from 2.5 percent.
