Regulatory Alerts2015-01-29
Added · Updated
BRPD Circular No. 04: Large Loan Restructuring
Scheduled banks in Bangladesh may restructure large loans with a minimum outstanding amount of Tk. 500 crore, provided the borrower is not involved in fraud. Applications must be submitted to the Banking Regulation & Policy Department by June 30, 2015, following approval by the bank's Board of Directors and Credit Committee. Restructured loans carry a maximum tenure of 12 years for term loans and 6 years for demand loans, with interest rates not lower than the cost of fund plus 1%. These facilities are classified as Special Mention Accounts with an additional 1% provision, and default on two consecutive installments results in cancellation of the restructuring.