Bangladesh Bank halts waivers to loan defaulters

Bangla Tribune Report
Published : 20:47, May 22, 2019 | Updated : 20:49, May 22, 2019

Bangladesh Bank FILE PHOTO/al jazeeraA day after the status quo by the High Court, Bangladesh Bank has halted the waivers it offered to loan defaulters.
In a circular to top commercial bank officials on Wednesday (May 22), the central bank cited the court’s order on the previous day and said that the waivers will be remained halted until Jun 24.
On May 16, the Bangladesh Bank issued the circular saying defaulters can regularize their bad loans now by paying only a 2 percent down payment, instead of 10 to 50 percent.
Although almost all sectors have been included for the latest loan rescheduling policy, the circular specifically mentioned a number of privileged priority sectors.
Trading sectors like wheat, food items, edible oil and refinery, and ship breaking, and other sectors where a huge number of bank loans have remained unpaid for long, will be considered for the latest loan rescheduling policy, the circular said.
Defaulted loans at specialized banks sanctioned for purposes other than agriculture will also be entitled to the facility, it added.
Other defaulted loans caused by factors beyond the control of otherwise 'good' borrowers will also be eligible for the rescheduling policy, the Bangladesh Bank circular elaborated.
In all cases, defaulters have to apply for the facility within 90 days of the circular. The loan defaulters have to repay their rescheduled loans within the next 10 years, with a one year grace period, according to the circular.
The rescheduled loan would have to be repaid at only 9 percent interest rate, said the circular.