Central bank made move as businesses slowed down due to Covid-19
According to the Bangladesh Bank (BB) opinion on Wednesday, borrowers from non-bank financial institutions (NBFIs) will not default until December 31 if they pay 50% of their loan maturities.
The central bank made the decision as businesses slowed down due to Covid-19.
Borrowers will now have to pay the rest of the installments within one year of the end of the loan repayment term.
NBFIs will not be allowed to transfer their interest or unrealized profits to their income segment during the particular period as mentioned by Bangladesh Bank.
This means that only the amount of interest, which is recovered from customers, can be added to the income segment, according to the notice.
Earlier on July 5 of this calendar year, the BB relaxed its policy to allow borrowers a chance to remain unclassified if they repay at least 50% of the loan or lease as of June 31. 2021, based on the NBFI-customer relationship following the resurgence of the Covid-19 epidemic.
On August 26, the central bank further relaxed its policy (Banking Sector) to allow borrowers a new chance to remain unclassified, if they repay a minimum of 25% of total outstanding loans, for any the calendar year to December 31.