BRPD Circular Letter No. 51: Loan Classification

Bangladesh Bank Chief Executive Office Motijheel, Dhaka-1000 Bangladesh. Ref No.: BRPD Circular Letter No. 51 Banking Regulation and Policy Department 18 December 2022 BRPD Circular Letter No. 51 Date: ----------------- 03 Poush 1429 Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh Dear Sir, Regarding Loan Classification.

1. Reference is invited to BRPD Circular Letter No. 14 dated 22 June 2022 on the subject cited above.

2. Through the aforementioned circular, it was instructed that if at least 75% of the installments due for unclassified term loans between October 2022 and December 2022 are paid by the last working day of December 2022, such loans will not be reclassified.

3. Due to the prolonged war situation in the world, there has been an increase in production costs in the industry, which has consequently reduced the actual income of borrowers. To keep the country's economic activities moving and to facilitate borrowers in paying loan installments, this instruction is issued that if 50% instead of at least 75% of the installments due for term loans between October 2022 and December 2022 are paid by the last working day of December 2022, such loans will not be reclassified.

4. For benefited term loans with the facilities mentioned in this circular letter, the unpaid portion of the installment(s) due from April 2022 to December 2022 through the aforementioned circular shall be payable in equal installments (monthly/quarterly) within 01 (one) year after the expiry of the originally stipulated tenure of the existing loan. However, considering the additional 01 (one) year period along with the remaining tenure based on the bank-customer relationship, the installments may be repaid according to a new schedule after re-determination.

5. Furthermore, other instructions of the aforementioned circular shall remain unchanged.

6. This instruction is issued under the powers conferred by Section 45 of the Bank Company Act, 1991.

7. This instruction shall take immediate effect.

Yours faithfully,

(Maksuda Begum) Director (BRPD) Phone: 9530252