Bangladesh Bank (BB) has announced a special initiative to assist farmers and Cottage, Micro, Small, and Medium Enterprises (CMSME) entrepreneurs impacted by recent floods, allowing them to defer their loan repayments.
According to a circular issued by the Banking Regulations and Policy Department (BRPD) on Sunday, borrowers in flood-affected regions can postpone their August loan installments for short-term agricultural and CMSME sector loans over three months.
The central bank acknowledged that many borrowers are struggling to meet their repayment obligations due to the floods, and emphasized the importance of facilitating their economic recovery. The circular specifically addresses borrowers with unclassified (non-compensatory) short-term loans as of July 1 in various flood-affected areas, including Feni, Noakhali, Laxmipur, Comilla, and Chattogram, as identified by the Ministry of Disaster Management and Relief. Under this new directive, borrowers in the short-term agriculture and CMSME sectors will be able to repay their August installments by October, with the repayment period extended to three months beyond the original loan due date.
Furthermore, the BB has instructed banks to extend the adjustment period for ongoing CMSME loans until October 2024. Importantly, the circular stipulates that no penalty interest, additional charges, or late fees will be imposed on delayed payments, aside from the regular interest rates. This directive is effective immediately.
