Bangladesh's top bankers suggest the central bank to consider FBCCI request for loan-repayment moratorium till December selectively and on condition, as they mention some willful defaults.
Following a meeting between the Bangladesh Bank governor and top brass and chief executives of banks on Thursday, BB spokesperson Md. Sirajul Islam said the matter was discussed elaborately at the meet but no final decision was made.
"There were mixed reactions among bankers on the issue, but maximum bankers said there should not be blanket opportunity," he said while talking to reporters at his office in Dhaka after the banking summit meet.
"The bankers made observations that after continuation of moratorium for two years they noticed that even unaffected sectors and good customers didn't repay loan," he said.
The spokesman said bankers were of the opinion that such blanket opportunity would discourage loyal and regular customers as well.
"Top bankers also said borrowers didn't avail classification-relaxation policy by paying 15 per cent of the total installment of loans payable in 2021 instead of the previous 25 per cent," he said adding that the decision of loan deferral will be taken after through scrutiny of the real situation.
The BB official said the central bank would take decision considering interests of all parties -- bankers, businesses and the country as a whole.
Association of Bankers, Bangladesh Limited Chairman Selim R F Hussain also told reporters that the issue was discussed in detail.
However, he wouldn't tell details of the issue of high financial importance.
Bangladesh's businesses seek loan moratorium till December this year on grounds of "volatility" in business ambience globally amid the war in Europe and resultant standoff in the West.
The country's apex trade body, the Federation of Bangladesh Chambers of Commerce and Industry, placed the request on Mat 31, in a package of economic-recovery recommendations, with the central bank, as its leaders fear a spectre of another economic "recession".
Earlier on December 30, 2021, the central bank eased its loan-classification policy for all borrowers following an FBCCI demand.
As per the relaxation, a borrower was not considered defaulter if he/she paid 15 per cent of the total installment of loans payable in 2021 instead of the previous 25 per cent.
In August 2021, the Bangladesh Bank had extended the loan-repayment facility under relaxed conditions till December 31, 2021.
The facility was first introduced in March 2020 amid the Covid pandemic enabling all borrowers to avoid having their loans classified.
Under the policy pats, the banks were barred from treating any loans as substandard if the borrowers paid 25 per cent of the dues for the months from January to December of the year 2021.
However, the BB spokesperson said the issue of loan recovery was discussed also at the meeting.
"Governor of BB Fazle Kabir urged the bankers to speed up the loan-recovery process, especially those already pending in courts," the BB spokesperson said.
Following the meeting, the ABB Chairman said the volume of NPL increased in recent times. "The accelerated process of loan recovery would certainly reduce the mounting NPL."
He also said formulation of a rapid loan-recovery team was discussed at the meeting along with the setting up of an exclusive club and hospital for bankers.
