Loan moratorium for shipbuilding industry extended

Bangladesh Bank has extended the loan repayment period by two years for shipbuilders.

However, the loan moratorium period is extended only to those who paid 5 per cent of their total loan instalments payable last year, according to a circular issued by the central bank on Thursday.

The decision was taken in response to a notice issued on January 10 from the Financial Institutions Division of the Finance Ministry.

That letter instructed the central to consider an extension of the loan moratorium by two years to help the industry face the ongoing pandemic shock.

Earlier in April 2018, Bangladesh Bank relaxed the loan repayment facility for the shipbuilding industry.

It provided the facility for the reschedule of loans without any down payment.

It also allowed shipbuilders to pay the loans in 13 years, which included a grace period of three years.

The three-year moratorium was supposed to end in 2020.