Six commercial banks have submitted proposals of the Jamuna Group to the central bank for restructuring large loans amounting to nearly Tk 12.50 billion, officials said Monday.
The banks are Janata Bank Limited, United Commercial Bank (UCB) Limited, Dutch-Bangla Bank Limited (DBBL), Social Islami Bank Limited (SIBL), IFIC Bank Limited and Mutual Trust Bank Limited (MTBL).
The Jamuna Group, one of the large business conglomerates in Bangladesh, has applied for restructuring the loans, taken against its 12 units, they added.
"We've received six loan-restructuring proposals of the Jamuna Group from the commercial banks," a senior official of the Bangladesh Bank (BB) told the FE.
He said the proposals will be sent to inter-departmental committee of the central bank Tuesday to scrutinise the terms and conditions for the loan recast.
The BB earlier formed a six-member inter-departmental committee to go through the terms and conditions, set by the central bank earlier for restructuring loans properly.
The central bank will take decision on the proposals after receiving the committee's report, according to the BB official.
Talking to the FE, another BB official said the Group has applied to restructure both its long-term and short-term loans in line with the existing large loan restructuring policy.
Over the 34 years of operations, the Group has ventured into electrical, engineering, chemical, leather, garments and textiles including spinning, knitting and dyeing, cosmetics, toiletries, beverages, real estate, housing, print and electronic media sectors.
The central banker also said the borrowers are allowed to repay their restructured term loans for maximum 12 years, while both restructured continuous and demand loans will be cleared within maximum six years.
The interested large borrowers will have to apply for recast of their loan portfolios by today (Tuesday), the last date for submitting application.
"A few more applications for large loan restructuring may be submitted to the central bank tomorrow (Tuesday)," the BB official said.
The BB had earlier determined large borrowers by the size of their outstanding loan portfolios -- Tk 5.0 billion being the baseline.
The central bank has already issued a circular in this connection and asked the commercial banks to set up special cells for ensuring monitoring and supervision of the restructured loans.
The BB's board of directors approved the policy on January 27 last allowing such loan rescheduling only if the business entities are hit by global or domestic shocks.
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