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NBFIs’ borrowers to get more time for loan restructuring

Staff Correspondent | Published: 22:34, Aug 09,2020 | Updated: 22:36, Aug 09,2020

 
 

The Bangladesh Bank on Sunday relaxed the loan restructuring policy for non-bank financial institutions with a view to save the borrowers who were suffering from the coronavirus fallout.

According to the BB circular issued on the day, borrowers of non-bank financial institutions would get up to 50 per cent time extension on the remaining time of maturity considering their financial capability.

The BB relaxed the policy so that the NBFIs can restructure the loans of their clients depending on the situation that had emerged due to the coronavirus pandemic.

Prior to this, the borrowers of NBFIs were eligible to get a maximum of 25 per cent time extension on the remaining time of maturity of their term loans.

The BB has already taken several policy measures considering the present situation in the wake of the pandemic, mainly to save businesses from the impacts of the coronavirus.

On June 21, the BB slashed the CRR rate for deposit-receiving non-bank financial institutions to boost liquidity on the money market.

The central bank issued a circular on the day slashing the biweekly average CRR rate to 1.5 per cent from 2.5 per cent and the daily CRR rate to 1 per cent for only deposit-receiving NBFIs.

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