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Bangladesh Bank suspends interest on bank loans

Published : 03 May 2020 10:09 PM | Updated : 05 Sep 2020 07:24 PM

Bangladesh Bank has suspended all kinds of interest on bank loans for from April 1 to May 31 as businesses have been hugely affected by coronavirus outbreak, reports UNB.

A circular issued by the central bank’s Banking Regulations and Policy Department (BRPD) to all banks of the country said the Bangladesh Bank has decided that interest on all kinds of bank loans have to be transferred as interest-less blocked.

“This blocked interest should not be realised from borrowers until further order and such kind of interest should not be transferred to the income of the banks,” said the Bangladesh Bank.

“Even if any bank has transferred such interest to its income, that would have to be adjusted through reverse-entry. The decision on preserved blocked interest would be informed later,” said the circular.

Bangladesh Bank’s decision came against the backdrop of the Prime Minister’s recent announcement on suspension of bank interest during her recent meeting with district administration of Rajshahi region.

The central bank said decision on interest suspension has been taken in order to protect the businesses from the impact of coronavirus outbreak.