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The Financial Express

BB freezes interest payment on loans for April-May

| Updated: May 04, 2020 09:38:28


BB halts interest payment on loans

The Bangladesh Bank has announced a suspension on interest payments on all loans due in April and May in a bid to help borrowers during the coronavirus pandemic.

In a notice on Sunday, the central bank directed banks to keep separate accounts of the accumulated interests, reports bdnews24.com.

Guidelines on ways to realise the interest payment will be issued later.

It said the banks will have to transfer the payable interests of the two months into blocked accounts.

They will not be allowed to transfer the amounts from these accounts to income. If they have already done it, they must adjust the accounts through the reverse entry, the central bank said.

The central bank’s Executive Director Kazi Saidur Rahman said it issued the directive on Prime Minister Sheikh Hasina’s instructions.

Prime Minister Sheikh Hasina on Apr 27 moved to allay the fears of business leaders about the payment of interest on loans during the ongoing coronavirus shutdown.

She said no-one should worry about interest payments as Bangladesh’s biggest challenge right now is to protect lives and keep livelihoods running.

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