A fresh loan-rescheduling and- restructuring policy the central bank has just issued would help raise recovery of huge unpaid loans and facilitate overall economic activities amid the exigencies of pandemic and war.
A spokesperson for the Bangladesh Bank came up with the policy analysis Tuesday, a day after the relaxation, mainly in terms of extending time and cutting costs, was rolled out.
"The new policy will help reduce the volume of classified loans in the country's banking system," Md. Serajul Islam told a press conference, explaining the main objectives of the policy.
Mr. Islam, also an executive director of the central bank, hoped the step would facilitate the country's ongoing development process by way of increasing flow of money in the economy.
"The new policy has allowed all the scheduled banks to reschedule loans freely without prior approval from the central bank," the spokesperson adds.
Actually, the banks, including their officials concerned, will be responsible for the rescheduling of loans, he explained.
Earlier, the central bank had given approval for rescheduling of loans having received 1-2 per cent of down payment, according to the spokesperson.
Mentioning lower down payment laid down in the new policy, the spokesperson said the amounts have been re-fixed considering payment capacity of the borrowers.
Under the fresh provisions, the down-payment amount for the first- time and second-time rescheduling of a term loans has been cut down to minimum 2.5-4.5 per cent from 15-50 per cent earlier of the overdue installments or 5.0-7.00 per cent of the total outstanding amount of a loan, whichever is less.
"There is no scope to give 29 years' time limit for rescheduling term loans under the new policy," Mr. Islam said while replying to a query.
Actually, time limit for first-and second- time rescheduling of term loans has been extended to six-eight years including grace period instead of previous nine to 24 months.
In case of continuous and demand loans, time limit for first-and second- time rescheduling has been jacked up to 5-7 years, including grace period, from 6-18 months.
Besides, loan defaulters have been allowed to get their classified loans rescheduled for a fourth time instead of three times earlier for the sake of recovery of the bad loans, according to a notification, issued by the BB on Monday.
Among others, Executive Director of the BB G.M. Abul Kalam Azad also spoke at the news conference, held at the central bank headquarters in Dhaka.
