Fresh loan moratorium depends on bank-client relations: BB
Borrowers should be able to avail of a brand new repayment deferral support, this time around for three months, predicated on the bank-customer relation.
Bangladesh Bank issued a good notice yesterday saying loan providers would have to take into factor whether they can do with not acquiring the instalment of loans from borrowers for the first quarter of this year. Borrowers will have to start offering the repayment instalments from the next quarter.
The central bank mentioned that borrowers taking three types of loans -- term, demand and continuous -- will love the mortgage loan deferral support.
This implies all borrowers in the banking sector would benefit from the new facility, aside from loans provided through bank cards, said a managing director of a bank, wishing never to be named.
A higher official of the central lender said the banking regulator had taken the initiative presented the rise in coronavirus attacks in the home and abroad.
It has already put an adverse impact on the economic situation in different countries, including European and North American nations, he said.
"Although the country's organization situation has improved a whole lot in recent months, the upward style of infections has recently created a drawback risk," he said.
From this backdrop, the central bank has taken the decision to provide another loan deferral support of three months.
The Federation of Bangladesh Chambers of Commerce and Market (FBCCI) in December had requested the central bank to increase the mortgage loan moratorium until June.
In March this past year, the central bank declared a loan moratorium facility for the banking sector, which was effective throughout this past year.
But a notable difference exists between the two moratoriums, as the previous one was enforced by the central bank and the most recent one will be applied based on bank-customer relations.
The central bank also relaxed the mortgage payment structure of continuous and demand loans.
A great number of clients who had taken continuous loans were unable to pay the instalments this past year.
The interest amount of the continuous loans, that have been scheduled to be paid this past year, will be repaid within June next year.
Clients will be permitted to pay the curiosity amount, like the principal one, in 6 quarterly instalments till June 2022.
Up to 37 per cent of loans are treated just as continuous credit of the outstanding loans amounting to Tk 11,58,775 crore in the banking sector as of December last year.
The repayment tenure of continuous loans is no more than one year, which is also treated as working capital.
Clients, who all had taken demand loans, may also get almost the same support.
Banks will have to restructure the demand loans, allowing customers to shell out the fund within December next 12 months.
Borrowers can pay the loan in 8 quarterly instalments.
Demand loans accounted for around 15 % of the fantastic loans found in the banking sector.
Clients will get a maximum of one year to settle demand loans.
In almost all of the cases, banks create such loans when importers neglect to adjust their payments promptly.
On January 31, the central lender also eased the repayment facility for term loans.
