BB relaxes loan exit policy for troubled businesses

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BB relaxes loan exit policy for troubled businesses

The down payment conditions for exit facilities on defaulted loans of closed or loss-making businesses were loosened by Bangladesh Bank (BB) today.
In this context, the central bank released a notice.
These applications can now be submitted with a down payment of just 5% of the current loan debt, instead of the previous 10%.

According to the notice, the management authority can now authorize departure facilities for loans up to Tk 20 lakh, as opposed to Tk 10 lakh in the past.

Any loans over this limit will require board approval.
On July 8th, last year, Bangladesh Bank launched an exit policy for companies, sectors, or initiatives that were founded on loans but have since closed or are losing money because of uncontrollable circumstances.
Through initiatives like interest waivers and other privileges, the strategy sought to recover such debts in a maximum of three years.

Until they are fully recovered, loans that use the escape facility will be listed as defaulted.
The policy has undergone some changes that further loosen the requirements. According to the updated policy, loans that use the exit facility cannot be postponed or reorganized.

 

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