BB extends coverage, duration of loan rescheduling facility
Monday, 7 December 2009
Siddique Islam
The central bank has extended both coverage and duration of the loan rescheduling facility for recession-hit export sectors without any downpayment.
Instead of five specific sectors, all export-oriented sectors will now be entitled to the facility until June 30 next year.
"We've relaxed the rules to facilitate the country's export-oriented sectors," a senior official of the Bangladesh Bank (BB) told the FE Sunday, adding that the banks can now reschedule loans on the basis of their relationship with clients.
He also said the central bank has taken the latest move in line with the second stimulus package, announced by the finance minister on November 25 last.
The central bank issued a circular in this connection Sunday and asked the chief executives and managing directors of all 48 scheduled banks to adhere to the relaxed rules relating to loan rescheduling.
On April 19 this year, the BB relaxed rules allowing loan rescheduling without down payment by five affected export-oriented sectors, until September 30 this year.
The sectors are frozen food, jute, leather, textile (including spinning) and readymade garment (RMG).
On the other hand, different trade bodies including Bangladesh Garment Manufactures and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) earlier requested the BB governor to extend the deadline for loan rescheduling without any down payment until June 2010 from the September 30, 2009.
The country's exporters welcomed the BB's latest move, saying that such relaxation will help the export-oriented sectors which are now facing hard time due to the global meltdown.
"This relaxation will help revitalize the rescission-hit export-oriented sectors," BKMEA President Fazlul Hoque told the FE, adding that the exporters earlier requested the central bank for extension of the timeframe for loan rescheduling to facilitate their businesses.
The central bank has extended both coverage and duration of the loan rescheduling facility for recession-hit export sectors without any downpayment.
Instead of five specific sectors, all export-oriented sectors will now be entitled to the facility until June 30 next year.
"We've relaxed the rules to facilitate the country's export-oriented sectors," a senior official of the Bangladesh Bank (BB) told the FE Sunday, adding that the banks can now reschedule loans on the basis of their relationship with clients.
He also said the central bank has taken the latest move in line with the second stimulus package, announced by the finance minister on November 25 last.
The central bank issued a circular in this connection Sunday and asked the chief executives and managing directors of all 48 scheduled banks to adhere to the relaxed rules relating to loan rescheduling.
On April 19 this year, the BB relaxed rules allowing loan rescheduling without down payment by five affected export-oriented sectors, until September 30 this year.
The sectors are frozen food, jute, leather, textile (including spinning) and readymade garment (RMG).
On the other hand, different trade bodies including Bangladesh Garment Manufactures and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) earlier requested the BB governor to extend the deadline for loan rescheduling without any down payment until June 2010 from the September 30, 2009.
The country's exporters welcomed the BB's latest move, saying that such relaxation will help the export-oriented sectors which are now facing hard time due to the global meltdown.
"This relaxation will help revitalize the rescission-hit export-oriented sectors," BKMEA President Fazlul Hoque told the FE, adding that the exporters earlier requested the central bank for extension of the timeframe for loan rescheduling to facilitate their businesses.