Borrowers of NBFIs can remain unclassified if 25pc repayment is made

The central bank further relaxed the repayment policy for the borrowers of outstanding loans or leases from non-banking financial institutions (NBFIs) to help the recovery of the pandemic-hit economy, officials said.

Under the latest relaxations, the borrowers will get a fresh chance to remain unclassified if they repay minimum 25 per cent instead of 50 per cent earlier of the total outstanding amounts of loans or lease for the months of January to December of 2021, even if the payment is made on the last working day of the calendar year, according to a notification issued by the Bangladesh Bank (BB) on Sunday.

However, the remaining 75 per cent of the outstanding loans or leases from January 2021 to December 2021 will be payable within one year from the date of expiry of the loans or leases, it added.

"We've relaxed the loan-classification policy further to help business activities across the country," a BB senior official told the FE while explaining the main objective of the relaxation.

Besides, all the NBFIs have been asked to keep additional 2.0 per cent special general provisioning against loans, which have enjoyed the latest policy support of the central bank, the official added.

Earlier on December 14 last, the central bank asked all the scheduled banks to keep additional 2.0 per cent special general provisioning instead of 1.0 per cent earlier against loans, which have enjoyed the latest policy support of the central bank.

The central bank has taken the latest moves aiming to improve shock absorbing capacity of the banks as well as NBFIs through strengthening their capital base.

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