Bangladesh Bank has extended the deadline by two months to settle the loan accounts of the sick or closed industries with the banks.
The sick or closed industries identified by the government will have to apply to their respective banks to seek the facility, said the central bank in a circular on Wednesday.
August 20 was the previous deadline for the loan account settlement, according to the previous circular.
The banks are allowed to transfer overdue amount of loans to block accounts with flexible repayment schedule for settling such loan accounts, according to the circular.
According to the banking regulations, the clients do not pay any interest on blocked loan accounts.
The banks could give a moratorium facility to the accounts and they (banks) could also implement a relaxed policy to realise the loan from the closed or sick industries, said the circular.
The sick or closed industries which had already been facilitated by an existing government package would not come under the new central bank package, it said.
The banks will be able to waive the interest suspense and penalty interest for the identified closed or sick industries. But the banks do not have to waive the original loan amount and the fees of the litigations of the closed or sick industries.
The banks can also be considering to waive the imposed interest by ensuring their recovery of cost of fund and not to debit their income accounts.
The board of directors of a bank will be able to relax the down payment policy to reschedule the defaulted loan if any sick and closed industry seek new loan.
The identified sick or closed industries which were under the government package would be resolved in accordance with the government direction, according to the central bank.
