The Bangladesh Bank has further extended the period during which its relaxed loan classification policy would remain in effect, given the slowdown in ongoing activities caused by the coronavirus pandemic.
According to the decision of the Bangladesh Bank, borrowers will be able to avoid the zone of default by paying 25 percent of each tranche of their loans until December of this year.
For all the latest news, follow the Daily Star’s Google News channel.
The remainder of each installment will have to be paid over the next year.
The central bank issued a notice on August 26 asking banks to follow instructions so that besieged businesses can take a break from the ongoing downturn.
On June 27, the central bank said borrowers could prevent the default zone from paying 20% of every tranche of their loans until June 30. In addition, the one due for June could be paid in August.
The banking regulator has decided to extend the duration of the easing policy following requests from many professional organizations citing the economic slowdown.
In addition, delinquent loans in the banking sector have also started to increase since the first quarter of this year, as the central bank withdraws a standstill facility.
Borrowers have benefited from a one-year moratorium throughout the past year.
Non-performing loans stood at Tk99,205 crore in June, up 11.80% from six months earlier and 3.21% year-on-year, according to BB data.