Staff Correspondent: Borrowers will not be labelled as defaulters, even if they fail to pay back their bank loans till December- as the Bangladesh Bank has extended the facility considering the lingering economic fallout of Covid-19.
The central bank – in a circular yesterday- asked banks not to downgrade the classification status of any borrowers for defaulted loans between the period of January and December this year.
As part of its crisis mitigation strategy, the Bangladesh Bank, earlier, on March 19 directed banks to provide this facility to all borrowers for six months – from January 1 to June 30. On June 15 the facility was extended further to September 30 this year.
Bank directors and different trade bodies had been calling for extending the facility till December this year as they believe many borrowers will not be able to repay their loans in the meantime.
However, the banks were instructed to upgrade the classification status of loans if any borrowers manage to repay loans regularly.
The facility was offered to keep the impact of the novel coronavirus within a tolerable level of businesses, said the central bank circular.
As per the latest circular, borrowers will get a time extension to repay loans for the months – between January and December – in which they failed to pay their instalments.
Banks can provide rational rebates to the borrowers who will pay loan’s installment regularly, said in the circular.
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