BB announces special loan repayment facility for flood victims

Bangladesh Bank (BB) has announced a special facility for flood-affected farmers and Cottage, Micro, Small and Medium Enterprises (CMSME) entrepreneurs to repay the loan installments

August installments of short-term agriculture and CMSME sector term loans in these areas can be repaid over three months, said a BB circular issued on Sunday.

As per the circular, borrowers affected by the recent floods are finding it difficult to repay or adjust their loans, reports BSS.

To continue the normal economic activities of the affected borrowers, it has been asked to ease the repayment.

To ease the repayment or adjustment of existing unclassified (non-compensatory) short-term agriculture and CMSME loans as of July 1 of other flood-affected areas including Feni, Noakhali, Lakshmipur, Cumilla and Chattogram identified by the Ministry of Disaster Management and Relief.

Short-term agriculture and CMSME sector term borrowers can repay the loan installments for August to October within three months of the expiry of the respective loan period.

The BB asked banks to increase the adjustment period of the ongoing loans of the CMSME sector between August 2024 and October 2024.

No penalty interest, additional interest, excess profit, late fee penalty (by whatever name called) other than regular interest shall be levied or levied on late payment.

This directive will be effective immediately, the circular added.