The Microcredit Regulatory Authority (MRA) on Sunday relaxed loan classification policy to ease the situation for its nearly 25 million small borrowers amid coronavirus outbreak.
A circular issued on the day asked micro finance institutions (MFIs) to refrain from classifying any loans adversely until June 30 in case borrowers failed to pay back the loan as per the schedule.
"We issued a circular directing all MFIs not to classify any loans until June 30 if they are not serviced timely during the period," Amalendu Mukharjee, executive vice chairman of MRA told Dhaka Tribune yesterday.
According to the circular, MFIs were asked not to classify any loans adversely until June 30 from January 01, 2020.
The circular said the global economy was going through a crisis phase due to the coronavirus outbreak and Bangladesh was also witnessing its negative impact.
The MRA hoped such policy relaxation would help the small borrowers to cope up with the difficult situation.
According to the circular, the directive was issued as per the Microcredit Regulatory Authority Act, 2006.
Mukharjee said the MRA followed the central bank policy as the Bangladesh Bank on Thursday instructed the country's banks to comply with the similar loan classification instruction.
