Loan defaulters not entitled to stimulus fund: BB

Loan defaulters will not get any money from the Tk 727.5 billion stimulus announced by the government for industries to cope up with the impacts of the novel coronavirus pandemic, said Bangladesh Bank.

The borrowers who have their debts rescheduled more than three times through a special scheme for defaulters to repay will not get the bailout funds either, the central bank said in a notice on Sunday.

According to a bdnews24.com report, only the firms that have faced damage due to the pandemic will get the bailout funds, it clarified.

Economists AB Mirza Azizul Islam and Ahsan H Mansur welcomed the guideline. Both had warned the government against giving loans to defaulters from the bailout funds.