Pay 25% of instalments to avoid being defaulter: BB

Bangladesh Bank has once again relaxed loan repayments rules for borrowers so that they don’t get defaulted by banks amid the coronavirus pandemic.

In a circular released on Friday, Bangladesh Bank said borrowers will not be classified as defaulters if they pay 25 percent of their instalments by December this year.

Earlier, the moratorium facility was extended till August 31, but that was based on bank-client relationship.

BB took the latest decision as businesses demanded the relaxation to maintain the momentum of the ongoing economic activities after the impacts of the second spell of the virus.

The central bank has extended the loan moratorium facility several times since the Covid-19 struck Bangladesh in March last year.

As part of that moratorium no borrower was classified as a defaulter in 2020. Later, it was extended till August 31, 2021.