DFIM Circular Letter No. 11: Write-off Policy

Ref No: DFIM Circular Letter No. 11 Department of Financial Institutions and Markets Bangladesh Bank Head Office Dhaka. November 21, 2013 DFIM Circular Letter No. 11 Date: ---------------- 7 Agrahayan, 1420 Managing Director / Chief Executive Officer All Financial Institutions operating in Bangladesh. Dear Sir, Loan Write-off (DFIM DvD) Policy. Reference is invited to your attention regarding DFIM Circular No. 03, dated March 15, 2007, on the subject cited above. In the said circular, it was directed that cases should be filed in court before writing off loans, advances, and leases classified as bad/loss-making, subject to 100% provision retention. However, it has been observed that in many cases, especially for small amount loans, the cost of litigation exceeds the loan amount. In this context, it has been decided that loans, advances, and leases of 50,000/- (Fifty Thousand) Taka or less, which are eligible for write-off, may be written off without filing a court case, subject to compliance with other directives of DFIM Circular No. 03/2007. This directive will take effect immediately. Please acknowledge receipt. Yours faithfully, (A.K.M. Amzad Hossain) Deputy General Manager Phone: 9530249