Loan classification policy to remain unchanged until June 30

The Bangladesh Bank has asked the scheduled banks to keep unchanged the classification status of loan, lease or advance until June 30 to facilitate business activities amid the coronavirus outbreak.

“Due to coronavirus, the world trade as well as Bangladesh business has faced negative impacts. Bangladesh Bank has taken the decision considering the negative impact of coronavirus on the country’s overall economy, financial loss of the borrowers and the repayment of their loans in time,” said a BB circular issued on Tuesday, reports BSS.

As per the circular, the classification status of loan, lease or advance on January 01, 2020 will remain unchanged until June 30.

But, the classification status of loan, lease or advance will be changed as per rules if the classification improves, the circular added.