BB may relaxes terms for rescheduling margin loans

Dhaka, Bangladesh (BBN) – The central bank of Bangladesh may relax the conditions for rescheduling margin loans on case-to-case basis aiming to help stabilize the current volatile situation in the country’s stock market, officials said.

“We’ll consider the matter about rescheduling of outstanding margin loans, positively if any bank applies, seeking relaxation of the conditions about down-payment for the purpose,” a senior official of Bangladesh Bank (BB) told BBN.

He also said that the central bank had earlier relaxed rules allowing loan rescheduling without down-payment for export-oriented sectors affected by the global financial meltdown in 2009 to facilitate their businesses.

Besides, the commercial banks can waive the interest accruals on margin loans through the bank-client relationship, the central banker said, adding that the BB has no restriction on waiving interests on margin loans by any bank.

BBN/SSR/AD-20Oct11-10:30 am (BST) 

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