Bangladesh Bank has relaxed the rules of loan classification considering the pandemic situation in the country.
“If at least 20 percent of the loan installment for the month of June, 2021 is repaid by August 31, 2021 on the basis of banker-customer relationship, the loan cannot be classified or downgrade at that time,” says a circular issued by the central bank on Sunday.The circular said that the facility was introduced with a view to sustaining the momentum of the country’s economic activities amid the surge of COVID-19 infection.
Besides, ensuring sustainability of investments and employment situation was another reason for the issuance of the policy relaxation that was issued on the day with immediate effect. Explaining the instruction, General Manager at the Banking Regulations and Policy Department Md. Ali Akbar Farazy said, “If the total loan installment amount is Tk 100 in June this year, the borrower will not be defaulter if he paid Tk 20 by Agust 31, 2021.”
The remaining 80 percent amount of the loan installment will have to adjust when tenure of the loan installment expires, he said.
The facility would be applicable for demand loans, term loans and current loans based on bank-customer relationship.
The BB issued a moratorium facility to all the bank borrowers for the entire year 2020 due to economic slowdown after the outbreak of coronavirus.