Bangladesh Bank Headquarters
Dhaka, Bangladesh (BBN)- The central bank of Bangladesh has relaxed policy allowing Non-Resident Bangladeshis (NRBs) to receive more housing loan aiming to boost the flow of inward remittance.
Under the relaxations, the NRBs are now eligible to avail housing finance facility at a maximum debt equity ratio of 75:25 instead of the debt equity ratio of 50:50.
“In order to enhance housing finance facility to NRBs working abroad, it has been decided that they may avail housing finance facility at a maximum debt equity ratio of 75:25 instead of existing debt equity ratio of 50:50,” the central bank said in a notification, issued by the Bangladesh Bank (BB) on Sunday.
Other instructions in this context shall remain unchanged, it added.
“We expect that it would help enhance the inflow of remittance through encouraging the NRBs to invest more in the sector,” a BB senior official told the FE while explaining the main objective of the notification.
Earlier on Thursday, senior bankers at a round table meeting urged the central bank of Bangladesh to allow a debt-equity ratio of 80:20 for home loan to NRBs so that they show more interest to invest in home in Bangladesh.
They also said it would also help boost inward remittance.
Earlier on December 06, 2015, the central bank asked the banks through issuing a circular to facilitate NRBs for purchasing apartment or lands through taking loans in Bangladesh Taka (BDT).
BBN/SSR/AD