Large borrowers too can avail moratorium repaying 15% of loan
The Bangladesh Bank has set a loan moratorium facility for all borrowers at 15% of their total repayable loans in 2021, backtracking from its earlier decision of 25% for large borrowers, in the face of pressure from businessmen and bank owners.
The decision was taken at a meeting between the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the Bangladesh Association of Banks (BAB) with the central bank governor on Thursday.
Earlier, on 14 December, the central bank issued a circular that says borrowers under the loan moratorium facility will not be considered defaulters if they pay 25% of the payable amount for the current year.
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Later, business associations demand a further relaxation of the loan moratorium facility. Following their demand, the central bank held a meeting on 28 December with bankers and decided to allow small borrowers to pay 15%.
"Traders are asking to extend the loan moratorium facility till June this year but the central bank decided on 15% loan moratorium," said Executive director and Spokesperson of Bangladesh Bank Sirajul Islam told The Business Standard.
Last year, banks and financial institutions were not defaulted on loans due to Covid-19. Earlier this year, the central bank said in a circular that no special facility would be given for loan repayment this time. However, to avoid creating additional pressure on customers to repay the loan, extra time is given to repay the unpaid loan.
After that, under the pressure of various parties, the Bangladesh Bank issued a circular on 27 August which said if anyone repays 25% of the loan this year, he could no longer have defaulted.
According to another recent circular, the full interest can be taken as profits against the collection of 25% of the loan, however, an additional 2% provision has to be made against the loan shown regularly.
