Bangladesh Bank on Wednesday relaxed the loan repayment policy for loss-making industries enlisted by the Commerce Ministry so that they could refund their loans on easy terms.
If a struggling industry pays 2.5% down payment of the principal amount of loans, they will be eligible to get a rebate on the whole interest payment, according to a central bank notice on the day.
After rebating the interest, banks will have to impose the interest rate on the remaining principal amount equivalent to their cost of funds.
The central bank termed the opportunity as a one-time exit facility for the businesses, which are now in a defaulted zone.
The defaulters, whose outstanding amount of loans is more than Tk50 lakh, will have to repay the loans within three years; otherwise the relaxed facility will be cancelled.
If any business has to repay the fund by selling their lands, they will be allowed to refund the amount within the stipulated duration of three years.
Banks will have to treat the loan as defaulted until the whole amount of funds is realized.
The borrowers will have to apply to the banks to get the facility within 45 days since the issuance of the notice.
But they will have to initially pay the down payment of 2.5% before getting the relaxed facility.
Banks will have to postpone the cases, which were earlier filed with the courts against the borrowers to recover the fund, within 90 days after the relaxed facility is given to the clients.
The adjourned cases will have to be revived if clients do not repay the loans within the timeframe.