Bangladesh Bank has extended the time of existing term loan or lease facilities by 50 percent of remaining time of maturity for the clients of financial institutions.
From now all customers of financial institutions will get double duration for debt restructuring as of before.A circular in this regard is issued by the Financial Institutions and Markets Department of Bangladesh Bank on Sunday.
The circular sent to the CEOs of all financial institutions operating in the country states that in order for financial institutions to analyse the financial viability of the client and come to a decision of restructuring at their own judgment, the term extension of loan or lease facility should be extended 50 per cent of existing remaining term. Earlier this period was 25 percent loan term.
According to the concerned, the financial institutions which used to have two years to restructure a loan for a period of 8 years, will now have four years to restructure the same loan.