Bangladesh Bank (BB) has further relaxed repayment of loans by allowing the borrowers to pay their dues to financial institutions in more instalments considering the effects of Covid-19 pandemic, reports UNB.
A BB circular, issued by Department of Financial Institutions and Markets (DFIM), said the financial institutions can rearrange the numbers of instalments for the short and long-term borrowers who are unable to pay the due instalments between January 1 and December 31 against their loans, lease and advances.
The financial institutions can reset both the number and amount of instalments considering them as "deferred" payments. The number of instalments could be increased in the same ratio as those are due from December to January 2020, said the BB circular.
The existing policy in this regard will remain unchanged and the financial institutions will refrain from imposing any extra fee, charges or penalty on borrowers in calculating their interest or profits, the circular said.
On September 29, the central bank extended its relaxed conditions for loan repayment until December 31 taking into consideration the impacts of coronavirus on the country's trade and business.
As per that circular, classification of loans will not be changed between January 1 and December 31 this year even if anyone fails to pay back the loan as per the schedule.
It is assumed that many loan recipients may not be able to repay their loans as per the schedule, said the central bank while issuing the previous circular.