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‘Further relaxation on loan repayment to help businesses’

Finance minister says

| Updated: October 01, 2020 09:45:27

‘Further relaxation on loan repayment to help businesses’

Defending the central bank’s move for further relaxation of the bank loan repayment by extending the moratorium until December 31, Finance Minister AHM Mustafa Kamal has said the step aims at helping businessmen amid the coronavirus pandemic.

“If any measures are taken, somehow someone will be affected, but we’re in favour of the businessmen," he told reporters while briefing on the outcome of the meeting of the Cabinet Committee on Public Purchase on Wednesday, report UNB and BSS.

He also opined that if the businessmen as the clients of banks remain well, then the banks will also be benefitted.

Mentioning that the trend of non-performing loans is on the downtrend while the balance sheet of the banks is also in good shape, Kamal said it is high time for the banks to support the businessmen.

“If this period was not extended, then the export and import operations as well as settlement of L/Cs could have been hampered,” he said.

The Bangladesh Bank, in a circular on September 28, said that classification of loan will not be changed between January 1 and December 31 this year even if anyone failed to pay back as per the schedule.

The finance minister said that the measures were taken considering the Covid impact on businesses. “If time is not extended for loan repayment, they can’t be able to execute export orders and settle letters of credit for import of goods."

Earlier, the moratorium was applicable till June 30. It was subsequently extended till September 30 through a similar circular issued by the central bank on June 15 this year.

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