National, Front Page

BB allows loan rescheduling facility for longer period

Published : 19 Jul 2022 10:19 PM | Updated : 20 Jul 2022 03:28 PM

The Bangladesh Bank has decided to facilitate defaulters to reschedule their loans for a prolonged period, taking into consideration the ongoing economic strain instead of getting pressures from any quarter.

The central bank is allowing rescheduling of loans up to four times under special consideration while the repayment period will be a maximum of eight years.

Under the facility, bank's board of directors will now provide the rescheduling facility to their default customers. But, earlier only the central bank had the power to grant this facility.

"In this new facility, the board has not been empowered, rather has been brought under responsibility," Serajul Islam, spokesperson of Bangladesh Bank, said this while speaking at a press conference held at the central bank main building Tuesday.

He said earlier the banks shirk their liability as the defaulters rescheduled their loans with the clearances of the central banks.

But, now the banks would have to be more accountable and more liable.

The central bank spokesperson said that the central bank wants to do full regulatory work from now on. "Operational tasks such as approval of rescheduling of loans will gradually reduce."

Serajul said the central bank would see whether the banks are rescheduling the loans properly or not adding, "Our inspection team will extend their support,"

He said if directors want to reschedule their loans, then they have to come to the central bank for approval as per the bank company act.

"The regulatory body hopes that the new provision will help to reduce the default loans in banking sector," Serajul added.

He said the facility would help to maintain stability in the financial sector and thus properly manage classified loans in light of the long-term impacts of the pandemic, the global economic instability, and the upward trend in Covid-19 infections.

Related Topics