Bangladesh Bank has moved away from its previous position in the policy of repaying defaulted loans. Bangladesh Bank has given concessions in this regard in the face of pressure from traders.
According to the new guidelines, any borrower will be exempted from default only by paying 15% of the installment payable by 2021.
Earlier, Bangladesh Bank had said that borrowers of all sectors except CSME would have to pay a minimum of 25 per cent of the installment payable this year.
Traders protested against the decision of Bangladesh Bank.
On Thursday (December 30), leaders of 15 business organizations of the country went to meet Bangladesh Bank Governor Fazle Kabir.
Jasim Uddin, president of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI), led the business delegation.
Bangladesh Bank Deputy Governor Kazi Chaidur Rahman and Abu Farah were also present at the meeting. Nasser.
After the meeting, Bangladesh Bank issued a notification on the same night stating that the loan repayment was relaxed.
The circular said that the customer will not be considered as a defaulter if he pays at least 15 percent of the installment payable between January and December 2021. The bank will be able to transfer the interest or profit of the loan which will be 15 percent of the repayable installment to the income sector.
However, as per the previous guidelines, special general reserve or provision of 2% has to be maintained against the special privileged loan.
After the meeting, FBCCI President Jasim Uddin told the media, “We had earlier written a letter to the Governor of Bangladesh Bank demanding justice for the Corona situation.” The meeting was held on various demands related to the interests of the economy including the issues mentioned in the letter. The meeting also demanded an increase in the size of the Export Development Fund (EDF) and an increase in borrowing limits. At the same time, I have demanded to postpone the loan classification period for some more time. Bangladesh Bank has asked us to review our demands and make a decision. However, it has been decided that all the borrowers will be exempted from default only if they pay 15 per cent instead of 25 per cent of the installments due this year.
The delegation of businessmen who went to meet the Governor included Faruk Hasan, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), AKM Selim Osman, President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Real Estate and Housing Association of Bangladesh (REHAM) Kajal, Bangladesh Chamber of Industries (BCI) President Anwar-ul-Alam Chowdhury Parvez, MCCI Senior Vice President Kamran Rahman, FBCCI Vice President Mostafa Azad Chowdhury Babu, Aminul Haque Shamim, Md. Amin Helali, Salahuddin Alamgir, Md. Habib Ullah Don and MA Razzak Khan.
Incidentally, after the corona infection started in the country, Bangladesh Bank gave concessions to the traders to repay the loan installments. Due to this discount, the borrowers have got the opportunity to get relief from default even without repaying the loan throughout the last year. The bank’s customers were exempted from default on payment of 25 per cent of the installment payable this year as well.
However, Bangladesh Bank recently issued a notification saying that if 25 per cent of a loan is not recovered within the last working day of this year, the loan will be disbursed.
The FBCCI protested against the notification of Bangladesh Bank and demanded to amend it.