BB asks banks to suspend loan classification till June

Under the relaxations, the banks have been instructed not to adversely classify any loans till June 30 from the states of January 01, 2020

FT ONLINE

Bangladesh Bank has asked commercial banks to introduce a six months moratorium on loan repayments in a bid to shore up the economy from the coronavirus fallout.

The central bank issued a circular in this regard today.

It means the status of a loan till June 30 will be the same as it was on January 1 even if a borrower fails to repay the banks a single penny.

However, the central bank of Bangladesh is going to announce a bailout programme soon aiming to facilitate the country’s foreign trade that faces a setback following the coronavirus outbreak.

Under the programme, businessmen will get a series of benefits –export proceed repatriation, sublimation of bill of entry and extension of EDF tenure – for six months, according to officials. They said the businessmen will avail such facilities until September 30, 2020