Regulatory Alerts2022-10-25
Added
BRPD Circular No. 18: Regarding Loan Adjustment of Government Identified Sick/Closed Industries (Non-Textile Sector)
Bangladesh Bank mandates that scheduled banks implement an exit policy to adjust outstanding loans exceeding BDT 5 million for non-textile industries identified as sick or closed by the Ministry of Industries. Banks must require a minimum cash down payment of 2.5% of the principal amount within 90 days of the circular's issuance and classify affected accounts as substandard until full adjustment is completed. The circular authorizes banks to waive interest, suspend ongoing legal cases via settlement agreements, and adjust loans through installment plans or asset sales within a maximum period of three years.
Topics
Share