Loan Settlement
BB extends time for sick industries by 2 months
The Bangladesh Bank has extended time by two months for the entrepreneurs of the government-identified sick and closed industries for applying to their respective banks to settle their loan accounts. The BB issued a circular to managing directors and chief executive officers of all banks on September 3 saying that the central bank had extended the time by two months for the sick and closed industries.
Earlier on June 20, the BB issued a circular asking the sick industry owners to apply by September 20 to their respective banks to settle their accounts.
The latest BB circular said that the other provisions of the previous circular would remain unchanged.
On June 20, the BB announced a package of facility to resolve the loan accounts of the government-identified sick and closed industries.
According to the package, the banks could convert the loan accounts of sick and closed industries into blocked accounts.
Clients do not pay any interest for blocked loan accounts.
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 and sick industries, the BB circular said.
The BB said the sick and closed industries which had already been facilitated by an existing government package would not come under the new central bank package.
Banks will be able to waive the interest suspense and penalty interest for the closed and sick industries. But banks can not able to waive the original loan amount and the fees of the litigations of the closed and sick industries.
Banks can also consider to waive the interest by ensuring their recovery of cost of fund and not to debit their income accounts, the BB said.
-With New Age input
