Dhaka, Banglaesh || Wednesday, 3 June 2020 || 20 Jyoishtho 1427
Headline: ■ 10 rules for June ■ White House went dark as protests raged outside ■ Rename Dhaka in honour of Bangabandhu ■ Educational institutions not reopening now ■ 82.87% students clear SSC, equivalent exams ■ Govt hikes bus fare by 60% ■ Industrialist Abdul Monem passes away ■ Stocks surge as bourses reopen after two months ■ Ride-sharing services remain suspended ■ Bangladesh records highest 40 deaths in a day ■ Oil prices climb, bolstered by ongoing supply curbs ■ Death toll climbs to 5; 11 still missing
BB suspends bank interest for April-May
Deshsangbad Desk
Published : Sunday, 3 May, 2020 at 10:00 PM, Update: 11.05.2020 11:40:04 PM

Bangladesh Bank

Bangladesh Bank

Bangladesh Bank (BB) on Sunday suspended the interest on all types of loans for the months of April and May to help borrowers overcome the economic hit of Covid-19.

As a result, borrowers will not pay the interest for two months against their loans payable to banks, as per a BB circular issued on the day.

“Several stimulus package, including low-interest loans through the banking system have been announced to revive the country’s economic activities in the face of the  economic impact of Covid-19,” says the circular.

Now the central bank decided that the interest on all types of bank loans from April 01 to May 31 would have to be transferred to interest-free blocked accounts and not to show those in banks’ income accounts considering the inconvenient situation for Covid-19, it also said.

Until further notice, banks could not impose these two months' interest.

If any bank already transferred interest to the income account, it has to be adjusted through reverse entry.

Talking to Dhaka Tribune, World Bank, Bangladesh former lead economist Zahid Hussain welcomed the central bank’s latest initiative.

“At this moment, the central bank has to take all kinds of initiatives to protect borrowers and small businesses. It will give some breathing space to the borrowers during this crisis period,” said Zahid Hussain.

He said the central bank had to play a proactive roll to implement the stimulus package announced by the government. Small and medium businesses, which were  not linked to any bank should be covered by stimulus package, he added.

Earlier on March 20, BB announced that no banks would be allowed to downgrade any loan until June 30, meaning  that failure of any borrower to repay loan installments in the January-June period would not result in any default of the borrower.

However, on April 28, Bangladesh Association of Banks (BAB) requested the finance ministry and BB to extend the timeframe from 30 June to 31 Dec 2020 regarding the down gradation of accounts.

On April 15, the BB asked banks not to charge any interest on credit card late fees from March 15 to May 31, this year.

Banks, which already charged or accrued interest on the customer’s credit cards late fees since March 15, had to pay back to customers’ accounts, said a BB circular, issued on the day.

The instruction would be effective from March 15 to May 31, added the circular.


Latest News
Also >>
Most Read
We're in Facebook
Editor & Publisher
M. Hossain
Advisory Editor
Brig. Gen. Abdus Sabur Mia (Rtd.)

Tel : +88 02 48311101-2
Cell : +88 01713 601729, +88 01842 601729
Email : [email protected]
Developed & Maintenance by i2soft