Regulatory Alerts2021-01-06
Added
BRPD Circular No. 01: Special Facilities for Institutions of Leather Sector which are Relocated to Tannery Industrial Estate at Savar
Bangladesh Bank provides special debt restructuring and rescheduling facilities for leather sector institutions relocated to the Savar Tannery Industrial Estate, requiring a minimum 2% cash down payment based on December 31, 2020, balances. Institutions unable to continue business may receive up to 3 years (for balances up to BDT 50 million) or 5 years (for balances above BDT 50 million) to repay debts, while those continuing operations may receive restructuring with a grace period of up to 1 year and a total tenure of up to 10 years. Interest on suspended, unapplied, and penal amounts may be waived subject to existing laws, but principal amounts cannot be waived, and a maximum interest rate of 9% applies to the remaining balance. Applications must be submitted by March 31, 2021, and banks must decide within 90 days of receipt; failure to pay six monthly or two quarterly installments results in the cancellation of facilities and revival of stayed legal cases.