Loan repayment failure would not make NBFIs’ borrowers defaulter

Staff Correspondent | Published: 22:31, Mar 24,2020


No loans with the non-bank financial intuitions could be downgraded to defaulted ones until June 30 this year on grounds of the borrowers’ failure in repaying instalments, said a Bangladesh Bank circular issued on Tuesday.

On March 19, the BB offered the same facility to the bank borrowers amid the accelerating spread of the pandemic coronavirus, bringing the country’s export and import almost to a halt.

To contain coronavirus spread, the government has already announced a 10-day closure of the government organisations starting from March 26 and deployed the army from Tuesday to enforce social isolation.

The BB announced that no NBFIs would be allowed to downgrade any loan until June 30, which means that failure of any borrower to repay loan instalments in the January-June period would not result in any default of the borrower.

The NBFIs, however, have been allowed to upgrade classification of any loan in the period depending on loan repayment, the BB circular said. 

More about:

Want stories like this in your inbox?

Sign up to exclusive daily email