BRPD Circular Letter No. 25: Financial stimulus package to mitigate probable economic impact due to breakout of Novel Corona Virus (COVID-19)

Ref No.: BRPD-Reg-Policy
Department of Banking Regulation and Policy
Bangladesh Bank
Head Office
Dhaka.
10 May 2020

BRPD Circular Letter No. 25 Date: --------------- 27 Baisakh 1427

Managing Directors / Chief Executives
All Scheduled Banks and Financial Institutions operating in Bangladesh.

Dear Sir,

Regarding the provision of financial stimulus to mitigate the probable economic impact in Bangladesh due to the outbreak of Novel Corona Virus (COVID-19).

Reference is drawn to your attention to BRPD Circular No. 08/2020 dated 12 April 2020 on the subject cited above.

2. Clause 3(x) of the said circular states that the minimum credit rating required for eligibility to obtain credit/investment facilities under the circular is 'AAA' (Triple A) based on the audited financial statements of the borrower/investor for the last completed year in accordance with Bangladesh Bank's 'Guidelines for Credit Rating of Borrowers/Investors'.

3. Due to the outbreak of COVID-19, official programs have been limited, making it difficult for borrowers/investors to submit necessary documents to banks to complete the credit rating process under AAA. Consequently, the completion of AAA rating work has become time-consuming.

4. In the stated situation, to restart their service/production programs under the industrial/service sector with the aim of reviving operations, banks may provide credit/investment facilities under the aforementioned package without completing the rating process in accordance with AAA. However, each bank shall select customers based on risk analysis of credit and banker-customer relationships under its existing own policy framework. In this regard, the 'Annexure-C-2' attached to the aforementioned circular is hereby replaced by the 'Annexure-C-2' attached herewith.

5. Furthermore, other instructions mentioned in BRPD Circular No. 08, dated 12/04/2020, shall remain unchanged.

These instructions shall take immediate effect.

Yours faithfully,

As per instructions

(Md. Mokbul Hossain)
Deputy General Manager (In-charge)
Phone: 9530268

Annexure-C-2
Subject: Regarding consent for providing easy credit/investment facilities as working capital to industries and service sector institutions under the financial stimulus mentioned in BRPD Circular No. 08/2020.

S.N. Description
01 Name of the applying institution:
02 Address of the applying institution:
03 Telephone No.:
04 TIN of the applying institution:
05 BIN of the applying institution:
06 Nature of the institution (Industry/Service) (including sub-sector name):
07 Date of establishment of the institution:
08 Date of application:
09 Approval/Permission of credit/investment by the competent authority of the bank (Board of Directors/Executive Committee/Others) (----th meeting and date of meeting):
10 Institution is a customer of the bank -
(Check the box)
Existing customer New customer
12 Amount of approved credit limit:
13 Is the applying customer a defaulter? (With base date) (Yes/No):
14 Approved limit for credit/investment for existing working capital as of the date of approval:
15 If any credit of the institution has been rescheduled, details of rescheduling date and sequence (including status of previous classification):
16 Has the credit taken from the bank been rescheduled more than three times after being classified as bad/loss in the past? (Yes/No) 17 Has the credit taken from any other bank/financial institution been rescheduled more than three times after being classified as bad/loss in the past? (Yes/No) 18 Is the customer's credit limit (after availing the discussed credit/investment facility) within the Single Customer Credit Limit (SCCL) of Bangladesh Bank? (Yes/No):
If not, what percentage of the Single Customer Credit Limit of Bangladesh Bank is it?
19 Details of collateral taken against the credit/investment [Note: The application form along with the approval document issued in favor of the credit/investing institution as mentioned in 7(j) of the circular, copy of approval by the competent authority, bank's opinion in favor of credit/investment approval by the applicant, and other necessary documents must be verified by the designated officer of the Special Cell and then the mentioned annexure must be sent.]

Signature
Name and Designation