By the deadline, defaulters will be allowed to file application for availing the facility at two percent down payment
The Bangladesh Bank (BB) on Sunday extended the special loan rescheduling facility until February 4 next year.
By the deadline, defaulters will be allowed to file application for availing the facility at two percent down payment.
The textile and garments sector can avail the special rescheduling and fresh loan facility without conducting any special audit, which was mandatory earlier.
The BB's Banking Regulation and Policy Department (BRPD) issued a circular in this regard on Sunday, asking all the scheduled banks to comply with the latest instruction.
The BB said it extended the timeframe for the loan defaulters in compliance with the directives of the November 3 (2019) verdict of the Supreme Court.
In the circular, the BRPD asked scheduled banks to follow the bank-client relationship to allow the latest special rescheduling facility.
The BRPD's fresh order dropped the provision of mandatory special audit for the textile and garments sector to avail the special rescheduling and fresh loan facility.
The previous deadline for filing application for availing the special rescheduling facility ended on October 20, 2019.
On May 16 this year, the BB had opened a special bailout scheme for loan defaulters with 2% down payment and a long 10-year repayment facility with one-year grace period. The circular also extended one time exit facility with maximum interest waiver for the defaulters.
The circular said there would be no new credit facility for the defaulted borrowers, who will be the beneficiary of the special rescheduling facility.
Human Rights and Peace for Bangladesh (HRPB) filed a writ petition with the High Court (HC) challenging the BB's May 16 circular. The HC on May 21 issued a status quo till June 24 on the central bank’s circular. The same court on June 24 extended the order for the next two months.
However, the HC order was stayed for a two-month period by the Supreme Court's Appellate Division on July 8, creating the scope of opening up the effectiveness of the BRPD circular for rescheduling and one time exit.
In light of the Supreme Court's appellate division's order, the central bank's BRPD issued instruction on banks on August 8, 2019 to notify loan defaulters to submit application with a deadline on September 7, which later were extended several time.