Borrowers get payment reprieve

Bangladesh Bank has extended a moratorium on the payment of loan instalments to non-bank financial institutions by three months to Sept 30, mirroring the facility given to borrowers from commercial banks amid the coronavirus pandemic, reports bdnews24.com.

In a circular issued on Wednesday, the central bank said the failure to repay a loan until Sept 30 would not be considered a default.

A directive in this regard has been sent to the chief executives of all financial institutions.

Earlier on Mar 24, the central bank announced that the classification of loans would not be changed until Jun 30 due to the coronavirus spread.

Highlighting the economic impact of the coronavirus pandemic, the central bank noted that industries, businesses and services were having difficulties resuming normal operations.

As a result, it issued guidelines aimed at minimising the effects of the COVID-19 outbreak on borrowers and their businesses.