More loan restructuring pleas to BB by deadline

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Siddique Islam | Published: July 01, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

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Two commercial banks submitted proposals of three more business groups to the central bank Tuesday for restructuring their large loans for repayment over a longer time.
The deadline for receiving applications for loan restructuring by the Bangladesh Bank (BB) expired Tuesday last.
Officials named the groups by their headwords as Sikder, Abdul Monem and Keya.
AB Bank Limited sent proposals seeking permission on restructuring of loans of two groups -- Sikder and Abdul Monem -- in line with the existing large loan-restructuring policy.       
Bangladesh Bank (BB) created the loan-rescheduling window through the policy issued on January 29.
On the other hand, Southeast Bank Limited submitted a proposal from Keya Cotton Mills Limited, a concern of Keya Group, for restructuring a loan amounting to more than Tk 3.10 billion.
"A few more banks have submitted proposals of two business groups -Abdul Monem and Keya - for the restructuring of loans," a BB senior official told the FE.
He wouldn't disclose the names of the banks and amounts of loans.
Sikder Group has applied for restructuring the loans worth Tk 6.17 billion, taken against its four accounts, another BB official said.
The accounts are Bel Construction Sdn Bhd Limited, R&R Aviation Limited, J&M Builders Private Limited and R&R Holdings Limited.
AB Bank Limited submitted a proposal of Abdul Monem Sugar Refinery Limited, a concern of Abdul Monem Group, for the recast of loan amounting to Tk 418.86 million.
"We'll submit the proposals to our inter-departmental committee Wednesday for scrutinising the terms and conditions for the loan recast," the central banker said.
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.
He also said the business groups had applied for restructuring both their long-term and short-term loans under the large loan-restructuring policy.
The borrowers will be allowed to repay their restructured term loans during a period of maximum 12 years, while both restructured continuous and demand loans will have to be cleared within maximum six years, according to the policy.
Different banks had earlier submitted proposals of three other business houses - Beximco, Jamuna and Thermax - to the BB for the restructuring of their large loans.
The central bank had earlier determined large borrowers by the size of their outstanding loan portfolios -- Tk 5.0 billion being the baseline.
It has already issued a circular asking the commercial banks to set up special cells for ensuring monitoring and supervision of the restructured loans.
The BB 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.
Shocks were there-particularly at that time-from both the fronts. Outside shockwaves were sent in from the Eurozone economic crisis while domestic damper was cast by political turmoil.        
siddique.islam@gmail.com