Those unable to repay their loan maturities by June 30 can now pay by August 31 later this year
The Bangladesh Bank (BB) decided on Monday to extend the deadline for bank borrowers to repay their loans, in light of the ongoing Covid-19 pandemic.
In a circular issued that day, the central bank said the June 30 deadline shift measure was taken in view of the negative impact of the coronavirus on the country’s economy.
Those who are unable to repay their loan maturities by June 30 can now pay by August 31 later this year, but this will be done on the basis of the bank-client relationship.
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In this case, their loans would not be classified if 50% of the outstanding portion of their loans is paid, he said, adding that other policies will still apply when calculating loans, leasing, interest on advances and profits while no penalty interest or additional fees will be charged.
Working capital loans, whose repayment periods have already expired, will be treated as regular loans until June 30, 2022 if borrowers pay their unpaid interest on a quarterly basis, in accordance with the BB notice.
Interest on last year’s working capital loans, whose repayment periods have already expired, can be paid by June 2022 in six quarterly installments.
Demand loan borrowers will be able to repay their loans in eight quarterly installments from March of this year to December 2022.
Lenders can’t downgrade loans if borrowers have paid their quarterly installments, the BB said.