BRPD Circular Letter No. 08: Regarding Loan Adjustment of Government Identified Sick/Closed Industries (Non-Textile Sector)

Bangladesh Bank
Chief General Manager
Motijheel, Dhaka-1000
Bangladesh.
Ref: BRPD Circular Letter No. 08
Banking Regulation and Policy Department
Date: -----------------
06 March 2023

Managing Director/Chief Executive Officer
All Scheduled Banks Operating in Bangladesh

Dear Sir,

Regarding the adjustment of loan accounts with principal loans exceeding 50 (fifty) lakh Taka among industrial units in the non-textile sector, identified and listed by the Ministry of Industries, and distressed due to reasons beyond the control of the entrepreneur.

With reference to your attention to BRPD Circular No. 18, dated 25 October 2022, on the subject cited above, and with the aim of further simplifying the loan repayment process for the aforementioned units, the following paragraphs of the Circular are hereby replaced as follows:

"(b) Banks may charge interest on the subsequent loan position after waiving interest (if any) at the highest Cost of Fund rate. However, banks may take their own decision to relax the Cost of Fund rate in the sectors specified in the Memorandum No. Am/Abi/Banking/Prosha-1/Bibidh-10/2001(Part-1)/67 issued by the Ministry of Finance on 12/02/2008.

(c) Customers must apply to the concerned bank for the down payment required under the policy guidelines by 30/06/2023. Applications related to this will not be accepted if the prescribed time is exceeded."

2. Other instructions mentioned in the aforementioned Circular shall remain unchanged.

3. These instructions are issued under the powers conferred by Section 45 of the Companies Act, 1991, and shall take immediate effect.

Yours faithfully,

(Md. Ali Akbar Farazi)
Director (BRPD)
Phone: 9530252