The Bangladesh Bank (BB) asked banks to stop receiving any fresh applications from defaulted borrowers to avail the special bailout scheme on loan rescheduling and one time exit facility as the deadline expired on Oct 20.
On May 16 this year, the BB offered a special bailout facility for loan defaulters with 2 percent down payment and a long 10-year repayment facility with one-year grace period and one time exit provision with maximum interest waiver.
On Wednesday (Oct 23), the BB's banking regulation and policy department (BRPD) issued a circular asking all scheduled banks to comply with the latest instruction.
The circular says there will be no new credit facility for the defaulted borrowers, who are the beneficiaries of the bailout scheme.
AKM Ehsan, general manager (current charge), BRPD, said that the latest circular was aimed at removing confusion, if any, over the extension of time by the high court up to Nov 19.
He said the confusion arose as the Supreme Court’s Appellate Division granted another extension of one month until Nov 19, 2019.
"The BRPD's deadline for filing application expired on Oct 20. To utilize the remaining time until Nov 19, banks will examine the applications for final approval," he said.
He said banks were advised not to receive any fresh applications.
Besides, banks would not approve any fresh loans in favour of any beneficiaries of rescheduling facility, he added.