The special loan rescheduling facility that the central bank is providing for the businesses affected by the pre-parliamentary election violence will cease to exist from Monday.
Bangladesh Bank’s Deputy Governor SK Sur Chowdhury said on Sunday the facility would not be extended further.
According to the central bank, at the end of Sept last year the amount of default loans was Tk 567.20 billion. It declined to Tk 405.83 billion in Dec-end but increased to Tk 481.72 billion by the end of March.
The central bank attributed the sharp fall in default loan amount during the Sept-Dec period to relaxation of rescheduling provisions.
It on Dec 23 had announced the relaxed provisions for businesses in agriculture and industrial sectors.
Earlier, the bank had announced similar relaxation of conditions for rescheduling loans in the small and medium enterprise (SME) sector.
Sur Chowdhury said they would not extend the facility as ‘many businessmen had already had their loans rescheduled more than once. “So there is no option to extend the time further.”
Businesses were affected by the political violence before the Jan 5 parliamentary elections that the BNP and its allies rejected and boycotted.
The alliance and like-minded parties enforced several spells of shutdowns and blockades to foil the polls.
Source: UNBConnect
