Bangladesh Bank has directed all banks to reschedule loans for those defaulting business entities hard hit by the political unrest.
Deputy Governor SK Sur Chowdhury said this to reporters after an emergency meeting with top executives of the banks on Monday.
The banks were, however, to take stock of the real situation of the companies before rescheduling their loans, he said.
“Many business entities have been running into losses due to the recent political unrest. All business organisations have sought special concession during this unrest period,” said Chowdhury.
“So we have discussed the overall situation with the banks. We have heard how they can help the affected business entities or look into their problems.”
“Taking in view the overall situation, we (Bangladesh Bank) have told (banks) that loans can be rescheduled for those who have been affected by unrest under special arrangements.”
“If any such application for rescheduling is sent to Bangladesh Bank, it will be viewed positively.”
A six-month concession will be given after proper scrutiny under the existing provision and guidelines, the Deputy Governor said.
The central bank will even approve proposals to extend time to declare businesses as final defaulters from current 18 months to 24, subject to the consent of the relevant banks.
After the meeting, Association of Bankers, Bangladesh President Nurul Amin also spoke to the reporters.
Total economy, especially transport, housing and apparel sectors have been severely affected due to the ongoing unrest, said Amin, alo NCC Bank Ltd Managing Director.
This has hard hit the banks too. Against this backdrop, Bangladesh Bank will help them so that balance sheets of the banks improve by year end, said the bankers’ leader, he added.
Business organisations urged Bangladesh Bank to create favourable banking situation to bail them out.
The FBCCI, DCCI and top garment exporters organisation BGMEA recently sought the central bank’s intervention to keep wheels of the economy running.
The facilities they sought are loan rescheduling, extension of loan classification period and lowering of lending rate.
The central bank later issued a circular addressing executives of all leading banks.