Monday, 17th January, 2022
Monday, 17th January, 2022
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BB further relaxes policy on defaulters to ease pandemic recovery

Bangladesh Bank (BB) on Sunday issued a directive relaxing loan classification and transfer of interest or profit to income accounts.

The central bank circular said that the borrowers who will pay 25 percent of loan instalments due within the period January 1, 2021 to December 31, 2021, would not be declared as defaulters. The remaining instalments would be realized within a year alongside paying regular loan instalments.

In a previous circular issued in September, this requirement had been kept at 50 percent.

Considering Covid-19’s impact on economic activities, the BB’s Department of Financial Institutions and Markets issued the circular.

Banks have to maintain 2 percent general additional provision against the loans or investments on the balance as of December 31, 2021.

Besides, other directives of the previous circular in this regard will remain unchanged.

BB took the latest decision as businesses demanded the relaxation to maintain the momentum of the ongoing economic activities after the impacts of the second wave of the Coronavirus pandemic.

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