Regulatory Alerts2022-02-15
Added
DFIM Circular No. 04: Special Policy on Loan Repayment through One Time Exit
The document establishes a special policy allowing financial institutions to offer a one-time exit facility for loans classified as substandard or doubtful as of December 31, 2021, provided borrowers make a minimum 2% down payment. Under this policy, institutions may waive up to 50% of accrued interest, unpaid interest, penalty interest, or other charges, while the principal amount remains non-waivable and must be fully recovered. Borrowers must apply by April 30, 2022, and institutions are required to make a decision within 60 days of application, with ongoing litigation potentially suspended during the exit period. The policy explicitly excludes loans arising from fraud or irregularities and mandates quarterly reporting of recovered funds to Bangladesh Bank.