BRPD Circular No. 15: Flow of Financing for the Effected Productive Activities and Business

Department of Banking Regulations and Policies Bangladesh Bank Head Office Dhaka. December 23, 2013 BRPD Circular No.- 15 Date: --------------------- Poush 09, 1420 Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh. Dear Sir,

Regarding maintaining uninterrupted financing for affected productive activities and businesses. Due to the prevailing instability in the country, the normal movement of inputs and products in the agriculture and industrial sectors has been disrupted, adversely affecting trade, commerce, and economic activities. Consequently, normal business operations are being hindered. Considering this matter, BRPD Circular No.-14 was issued on December 18, 2013, to ensure the continuation of credit flow in the SME sector.

Now, it has been decided that for genuine borrowers in all sectors (except agriculture and SMEs) who have suffered actual damage, to continue their business operations and ensure loan recovery, the determination of down payment and tenure for provided credit facilities may be considered on the basis of the banker-customer relationship, and the tenure for loan restructuring may be determined reasonably. However, in this regard, after obtaining approval from the competent authority of the bank, the no-objection of Bangladesh Bank must be obtained.

Furthermore, in the case of the agriculture sector as well, banks themselves can determine reasonable down payments and repayment periods for loan rescheduling on the basis of the banker-customer relationship, similar to the SME sector.

This measure will remain in force until June 30, 2014.

Kindly acknowledge receipt.

Yours faithfully, (Md. Anowarul Islam) Deputy General Manager Phone: 9530094