Dhaka, Bangladesh (BBN) – The central bank of Bangladesh has issued a fresh policy on rescheduling short-term agriculture, micro-credit and SME loans to help the flood-affected borrowers continue their economic activities.
Under the policy, the banks are now allowed to reschedule such loans under ‘banker-client’ relationship through relaxation of down payment requirements.
“We’ve issued the policy aiming to help the flood affected farmers, entrepreneurs of micro-credit and SME sectors for keeping their businesses uninterrupted despite of the ongoing floods in different parts of the country,” a senior official of the Bangladesh Bank (BB) told BBN in Dhaka.
The central bank issued a circular in this connection on Tuesday and asked the chief executive officers and managing directors of all scheduled banks to follow the policy properly for rescheduling of such loans.
The flood-affected farmers and entrepreneurs will be eligible for getting fresh loans without depositing any compromised amount after rescheduling such loans, according to the policy.
It said maximum six-month will be treated as a grace period for such rescheduling of loans under the ‘banker-client’ relationship.
The banks may reschedule such loans after disposal of the certificate cases through mutual agreements with the clients. Such rescheduled facility will continue until June 30 next year.
The BB took the latest move against the backdrop of the current floods in the northern and central districts that directly affected around 5.20 million people and so far claimed 109 lives.