The Bangladesh Bank circular which gives special facilities to loan defaulters is finally being enforced. Now defaulters will get ten years to pay back their delinquent loans. Under this, in the next two months, defaulters will be able to re-schedule their loans.
But during this time, they will not get any new loan; as per directive from Bangladesh Bank, defaulters can re-schedule loans by giving two thirds as down payment.
Willful defaulters will also be able to take this chance. Defaulters won’t have to pay anything on the first year and identified defaulters will have to give interest which is less than 9 per cent.
Former deputy governor of the Bangladesh Bank, Ibrahim Khaled says: “The government likes loan defaulters and therefore, is giving them facilities. The amount of good loan is more than Tk 9 trillion and instead of giving facilities to people with such loans, the government is aiding those with bad loans worth Tk 1 trillion.”
Since facilities for defaulters are more, the amount has gone beyond Tk 1 trillion. Earlier, when Bangladesh Bank issued a circular on May 16, giving special privileges to defaulters, a storm of criticism erupted.
At that time, high court issued a stay order on the circular.
But with an appellate division order on the stay order, the circular is finally being enforced.
The chief executive officers of private banks have been asked to take necessary steps in this regard. Bangladesh Bank officials say that to take the advantage of the re-scheduling, defaulters must apply by 16 August.
On May 16, Bangladesh Bank issued a special policy to allow re-scheduling of loans with 2 per cent down payment and 9 per cent interest for ten years.
Circular says that failing to give three monthly installments out of nine or one three monthly installments, will not make a client a defaulter. But if a client misses 6 monthly installments and 2 three monthly ones then the re-scheduling facility will be cancelled.
Those who have become defaulters after independence will be given exit facility. There is also the chance for a defaulter to pay back all loans in one go and take an exit.
The following sectors will get preference: trading (wheat, food items, edible oil and refinery), ship breaking and building, iron and steel.