BB to decide on large loan restructurings by mid-Sept

Siddique Islam | Published: August 27, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

The central bank is set to give its decision on the large loan restructuring proposals by the middle of next month, officials said on Tuesday.
"We expect to complete our formalities regarding the loan restructuring proposals shortly. The decision to this effect will be given by the second week of September," an executive director of the Bangladesh Bank (BB) told the FE. Â
The central bank has already approved proposals of two groups - Thermax and Ratanpur - submitted by the banks concerned, after receiving clearance from the large loan scrutiny committee.
BB earlier formed a six-member inter-departmental committee to go through the terms and conditions, set for restructuring the loans properly.
"The committee has already submitted scrutiny report on Jamuna Group loans to the authority concerned of the central bank for taking necessary actions," another BB senior official told the FE.
He also said the central bank will give approval to the loan restructuring proposals of Jamuna Group within a couple of days.
Earlier, 10 commercial banks submitted the proposals to BB for restructuring Jamuna Group's loans, amounting to Tk 16.84 billion.
The central bank has also approved Janata Bank Limited's proposal for rescheduling loans of Beximco Group, amounting to Tk 18.49 billion, under the large loan restructuring policy.
BB's large loan scrutiny committee has already given clearance to Sonali Bank Limited's proposal for rescheduling another loan of the group, amounting to Tk 10.75 billion, under the policy.
"We'll also issue an approval letter to Sonali Bank Limited regarding Beximco Group's large loan proposal," the central banker said.
Earlier, eight commercial banks submitted proposals of Beximco Group to the central bank for restructuring loans, amounting to Tk 56.43 billion.
Other proposals under scrutiny are: Sikder Group's Tk 18.38 billion with three banks, Abdul Monem Ltd's Tk 5.77 billion with four banks, Keya Group's Tk 9.14 billion with six banks, SA Group's Tk 8.33 billion with five banks, BR Spinning's Tk 5.93 billion with four banks, and AnonTex's Tk 10.94 billion with one bank.
"We're now scrutinising different aspects of the proposals in line with our policy," a member of the large loan scrutiny committee said.
BB board of directors approved the policy on January 27, allowing large loan rescheduling, only if the business entities are hit by global or domestic shocks.
The central banker also said the committee is examining cash flow projection of the proposals closely to minimise risk.
BB earlier determined large borrowers by the size of their outstanding loan portfolios with Tk 5.0 billion as the baseline.
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