Special Loan Rescheduling

Leather sector businesses get 3 more months

Staff Correspondent | Published: 23:50, Apr 12,2021

 
 

The Bangladesh Bank on Monday extended the special loan rescheduling facility by three months for the leather sector entities relocated in the Savar Leather Industrial Park on the outskirts of Dhaka.

A BB circular issued on the day extended the application submission deadline to June 30, 2021.

On January 6 this year, the central bank introduced the policy, setting March 31, 2021 as the application submission deadline.

Monday’s BB circular said that the scope was extended by three months since the country has been going through a fresh wave of COVID-19 outbreak.

The fresh wave of coronavirus has also raised concern among the businesses of being affected again that prompted the central bank to extend the deadline for filing loan rescheduling applications, the BB said.

The approval of the loan rescheduling or restructuring is subject to payment of 2 per cent of the outstanding loans prior to the application submission, it said.

The leather sector entities that have already received loan restructure, rescheduling and interest waiver facilities will be considered eligible to get the new exit policy.

The policy also allows banks to waive interest charged on the borrowers.

The leather sector businesses, which will not be able to continue their enterprises, with outstanding loans less within Tk 5 crore will get three years to repay debts while the repayment tenure can be up to five years against the outstanding loans above Tk 5 crore.

Besides, banks are also empowered to sell assets of the borrowers that were pledged as collaterals.

The borrowers, who will be able to continue business, will get up to 10 years repayment tenure, including one year grace period to repay the rescheduled loan.

In 2019, the central bank floated the same rescheduling facility for bank loan defaulters in all sectors on easy terms following a government policy decision.

The government had come up with the policy with a view to bringing down soaring non-performing loans in the country’s banking sector.

Following the introduction of the policy in 2019, NPL in the country’s banking sector came down to Tk 88,283 crore at the end of December 2020 after reaching above Tk 1,16,000 crore in September 2019.

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