Finance minister backs suspension until Dec

Finance minister AHM Mustafa Kamal said on Wednesday that the decision on suspending the loan classification rules until December has been made in the greater interest of businesses.

"…I believe the Bangladesh Bank has made the right decision by extending the facility (once more)," he told reporters after a virtual meeting of the cabinet committee on government purchase.

The suspension of the rules first took effect on March 19 until June 30 after coronavirus turned pandemic halting businesses.

Thereafter, the facility was extended for another three months until September 30 to help the businesses battered by the pandemic.

Last Monday, the central bank further extended the facility until December 2020.

Mr Kamal said the facility has been extended this time also because of the coronavirus impacts but would not be granted any further extension.

"The government didn't give loan waiver, only extended the repayment period," he said replying to a query.

The minister said the banks will definitely get the borrowed money back.

"Unless we extend time, if we create a barrier at this moment, we won't be able to materialise export orders and settle import letters of credit," he said.

"The sooner the loans become classified, their normal activities will be stopped. I think that (making loans classified) would not be right at this moment."

When his attention was drawn to banks' loss of income for such extensions, Mr Kamal said someone has to bear the brunt when such steps are taken.

"For the greater interest, we're in favour of businessmen," he said, adding that if businesses remain well, banks will also remain well.

Last year, every bank made a good profit and the state of their balance sheet is well while the volume of non-performing loans is also lowering, he mentioned.

"I think it is time to help businesses. If the banks help their clients, ultimately the banks will be beneficial," cited the minister.

The cabinet meeting approved a proposal on 'Improvement of Dhaka (Joydevpur)-Mymensingh road into expressway with service lane on both sides'.

Seoul-based Korea Overseas Infrastructure and Urban Development Corporation (KIND) will implement the work on a public-private partnership basis.

The meeting also approved a proposal to build 76 apartments for public servants inside Azimpur government colony, import of 30,000-tonne bagged granular urea and 50,000-tonne bulk granular urea.

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