DFIM Circular Letter No. 06: Regarding Loan/Lease/Advance Classification for Financial Institutions

Bangladesh Bank Head Office Motijheel, Dhaka Website: www.bb.org.bd

DFIM Circular Letter No. 06

To, The Chief Executive/Managing Director All Scheduled Banks operating in Bangladesh.

Subject: Loan/Lease/Advance Classification.

Reference is made to DFIM Circular Letter No. 01 dated March 24, 2020, and DFIM Circular Letter No. 05 dated August 26, 2020.

2. In light of the impact of the COVID-19 pandemic on the economy and considering the need for certain relaxations in the classification of loans/leases/advances, the following guidelines are issued for your compliance:

(a) Loans/leases/advances (both short-term and long-term) against specific borrowers in the affected sectors listed in the sectoral list shall be classified as Deferred from January 1, 2020, to December 31, 2020. Prior to January/2021, the volume and number of such loans/leases/advances shall be redefined. A new sectoral list shall be adopted, and the number of such cases from January/2020 to December/2020 shall remain the same, while the number of such cases may be increased; and

(b) The existing policy for the calculation of interest/profit on loans/leases/advances shall remain in force during this period, and no additional interest, penalty/charge/commission (however named) shall be charged.

This directive is issued with the approval of the Governor under Section 18(c) of the Bangladesh Bank Order, 1993.

Deputy Governor,

(Signature) (Md. Zulkar Noyon) Deputy Governor

File No: 9530518 Date of Issue: 16 Katik 1427 01 November 2020

Draft Circular Letter Draft Circular Letter