Bangladesh Bank (BB) has given a directive to the commercial banks to reschedule the loan of rawhide traders with only 2 percent down payment on the eve of Eid-ul-Azha, the biggest supply season of the item.
The traders can apply for new loan with minimum 2 percent down payment. The respective banks will decide to provide new loan to the rawhide traders on the basis of bank-client relationship.However, the banks cannot reschedule the loan of rawhide traders less than 2 percent down payment.
Bangladesh Bank’s Banking Regulation and Policy Department issued the directive in this regard on Sunday. The letter was sent to the Managing Directors (MDs) and Chief Executives Officers (CEOs) of all banks.
The BB instruction also said the loan instalment already collected will not be treated as down payment in this case.
The central bank instruction also said the rescheduling facility can be provided under this circular if the loan or investment account has been classified and the business is in operation.
On a case-to-case basis, the call loan and ongoing loan with a grace period of one year can be rescheduled for a maximum period of 6 years and the term loan for a maximum period of 8 years.
The condition of accepting a compromised amount can be relaxed in the case of disbursement of new loans for the purpose of purchasing raw hides of sacrificial animals, the directive said.The interested rawhide traders have to apply for this loan by July 30.