BB relaxes loans repayment

Bangladesh Bank has relaxed repayment of loans and allowed the borrowers of financial institutions (FIs) to clear their installments for the month of March up to June this year.

For this delay payment, the FIs will not be able to list any borrower as defaulter. Again, the FIs will not be able to levy any additional charges, interest or commission, said a BB circular on Tuesday.

Earlier last year, BB had given the same benefits to the customers of financial institutions. However, that term ended December last year.

In its circular the central bank said in view of the negative impact of Covid-19, some relaxation had been brought earlier regarding the classification of loans, leases and advances of the financial institutions.

Now, for the same reason, this new decision has been made about the customers of the financial institutions who are facing problems in paying the installments temporarily.

“If the March installment is paid by June 30 on the basis of FI-customer relationship, it cannot be classified. No additional charges may be levied in the name of charges, interest or commission for this period,” the central bank said in the circular.