Bangladesh Bank has decided not to restructure large loans with special facilities if the person or the businesses are defaulters.
Back in 2005, the central bank offered the restructuring opportunity to big borrowers, especially those in trouble, with a condition that if they fail to pay two instalments in a row, they will be marked as defaulters and will be sued.
However, they need to pay a down payment of 10% to 50% of the defaulted loans to restructure their nonperforming loans, as per the Bangladesh Bank policy.
Bangladesh Bank recently came up with the decision of not providing special benefits for borrowers of more than Tk500 crore if they ask for further restructuring.
Seeking anonymity, a central bank official said: "Borrowers who have repaid regular loan instalments in accordance with the terms of a special large debt restructuring policy, enjoy a one-time refinancing facility for term loans and working capital. But many borrowers have not been able to or have shown no interest to pay the instalments even after taking this benefit.”
According to him, this was discussed recently when they made another proposal to the central bank to restructure those loans again.
However, in the end, it was decided not to provide this facility for the time being.
The central bank recently allowed Janata Bank to regularize default loans of 17 entities under AnonTex Group, relaxing its own rescheduling policy.
Now AnonTex Group will pay Tk86 crore in down payments for its Tk3,564 crore loans.
