BB extends time until Nov 30

The central bank has extended further the deadline for implementation of the stimulus package for the cottage, micro, small and medium enterprises (CMSMEs) by one more month, from October 31 to November 30.
The Bangladesh Bank (BB) issued a notification in this connection on Sunday.
"We've extended the deadline further to help the banks and non-banking financial institutions (NBFIs) implement the financial package for the CMSMEs properly," a senior official of the BB told the FE while explaining the main objective of the notification.
He also said the deadline has been extended in line with the stakeholders' requirements.
Senior bankers earlier urged the BB to extend the deadline further by two more months, from October 31 to December 31, for implementing the package properly.
The BB's latest move came against the backdrop of slow progress in loan disbursement under the package for the CMSMEs until October 22. The banks and NBFIs disbursed Tk 56.74 billion of the stimulus package by then.
The disbursed amount is 28.37 per cent of the total Tk 200 billion financial support for the sector. Loans amounting to Tk 75.88 billion were approved for nearly 38,000 Covid-19-affected CMSMEs across the country during the period, according to the central bank's latest statistics.
On August 17, the central bank extended the deadline for execution of the package for the CMSMEs by two months, from August 31 to October 31.
"We'll try to fully implement the package within this month in line with the BB's latest directive," Syed Abdul Momen, BRAC Bank's SME Banking Head, told the FE while explaining the latest situation regarding implementation of the package.
Mr. Momen also urged the central bank to extend the deadline further by one more month to December 31 from the existing November 30 for smooth execution of the package.
UNB adds: Bangladesh Bank has brought another relaxation in repayment of loans by allowing the borrowers to make their due payments to financial institutions in more installments considering the Covid-19 effects, reports UNB.
A Bangladesh Bank circular, issued by Department of Financial Institutions and Markets (DFIM), said the financial institutions can rearrange the numbers of installments for the short and long term borrowers who are unable to pay the due installments between January 1 and December 31 against their loans, lease and advances.
The financial institutions can reset both the number and amount of installments considering them as "deferred" payments. The number of installments could be increased in the same ratio as those are due from December to January 2020, said the BB circular .The existing policy in this regard will remain unchanged and the financial institutions will refrain from imposing any extra fee, charges or penalty on borrowers in calculating their interest or profits, the circular said. Earlier, the Bangladesh Bank on September 29 in a circular had extended its relaxed conditions for loan repayment till December 31 taking into consideration the impacts of coronavirus on the country's trade and business.
As per that circular, classification of loan will not be changed between January 1 and December 31 this year even if anyone fails to pay back the loan as per the schedule.
It is assumed that many loan recipients may not be able to repay their loans as per the schedule, said the central bank said while issuing the previous circular.
Meanwhile, the Bangladesh Bank in another circular extended the timeframe by one month until November 30 to achieve the loan distribution targets for banks under the economic stimulus package declared by the Prime Minister for the cottage, micro, small and medium enterprise (CMSME) to offset the effects of Covid-19.
The circular, issued by SME and Special Programmes Department, said that it was found in the analysis of information that some banks and financial institutions have failed to achieve the targets of implementing the Prime Minister's announced Tk 20,000 crore loan package by the deadline of October 31.
The deadline of the loan distribution has been further extended until November 30 from October 31 to properly implement the stimulus package for the CMSME by banks and financial institutions, said he BB circular.

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