Sunday, 8 December, 2019, 9:35 PM
Home Front Page

Allow loan rescheduling, BB advises commercial banks

Published : Tuesday, 16 July, 2019 at 12:00 AM  Count : 884

Bangladesh Bank has asked the commercial banks to allow bank loan defaulters to avail of the loan rescheduling facilities for the next two months in accordance with the new rescheduling policy announced by the Finance Ministry.
The central bank's advisory to the commercial banks came in the light of the Supreme Court order on July 8 allowing rescheduling for two months staying the earlier High Court order which had stayed new rescheduling.  
Under the policy defaulters have been allowed 10 years to repay loans with 2 per cent down payment. The central bank order in a circular on July 11 to banks said in the light of the latest Supreme Court order staying the High Court order loan rescheduling will be admissible.
But during this time (two months) defaulters will not be allowed to get new loans. The central bank has asked all commercial banks to implement the guidelines to give rescheduling facilities to defaulters.
The circular said even willful defaulters will get the rescheduling facilities and that they will be exempted from paying
loan installment for one year. Identified loan defaulters will have to pay 9 per cent interest on the rescheduled loans.
Former Deputy Governor of Bangladesh Bank Khondker Ibrahim Khaled sounded highly critical of the new loan rescheduling policies.  He said the new policy suggests the government loves defaulters more than normal borrowers.
He said the banking sector has a total loan of Tk 9 lakh crore in the system and instead of giving relief to general borrowers, many of them hard hit many ways the government is sheltering the delinquent borrowers having more than Tk 1 lakh crore in their possession.
He said Bangladesh Bank has  in fact changed the definition of loan defaulters by issuing the new circular. Under this real defaulters can't be called defaulters anymore and it will not only discriminate honest borrowers but also seriously affect the entire banking system, he said.











« PreviousNext »



Latest News
Most Read News
Editor : Iqbal Sobhan Chowdhury
Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000. Phone :9586651-58. Online: 9513959, Advertisement: 9513663
E-mail: info@dailyobserverbd.com, online@dailyobserverbd.com, news@dailyobserverbd.com, advertisement@dailyobserverbd.com,   [ABOUT US]     [CONTACT US]   [AD RATE]   Developed & Maintenance by i2soft