Clients will enjoy the relaxed facility based on an institution-customer relationship basis
Borrowers of non-bank financial institutions (NBFIs) will be able to get a fresh moratorium facility on the instalment of loans based on the institution-customer relationship.
The Bangladesh Bank on Tuesday issued a notice saying NBFI borrowers will be able to pay the instalments till June 30 this year, the repayment deadline for which was previously until March this year.
Clients will enjoy the relaxed facility based on an institution-customer relationship basis and the lenders cannot downgrade the loans during the period, the central bank notice adds.
The lenders can impose interest on borrowers’ loans during the three-month period as per the existing rules, but they cannot impose any kind of penalties or additional interest.
Bangladesh Bank has taken such an initiative to deal with the negative impact of the Covid-19 pandemic and to normalize credit flow in the financial sector, said a senior official of the central bank.
The second wave of the global pandemic has already put an adverse impact on the country’s businesses and economy, he added.
Before the move, the central bank last month announced the same facilities for the borrowers of banks.
In March last year, Bangladesh Bank declared a loan moratorium facility for the borrowers of NBFIs and banks, which was effective throughout last year.
Then in January this year, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) requested the central bank to extend the moratorium facility on the payment of loan instalments.
The country’s apex trade body made the request in the wake of the adverse impact of the prevailing pandemic on trade and economy.
Businesses welcomed the central bank’s step and said the relaxation in the repayment terms would help them recover smoothly.