Relaxed policy extended for NBFI defaulters

Defaulters of non-bank financial institutions (NBFIs) will get two months more to reschedule their bad debts under a relaxed loan classification policy, according to a notice issued by Bangladesh Bank yesterday.

Bangladesh Bank said in February that defaulters of NBFIs would be permitted to reschedule their non-performing loans (NPLs) by giving 2 per cent down payment under a one-time only exit policy within April this year.

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But many defaulters have failed to apply for this on time, which is why Bangladesh Bank extended the deadline until July, the central bank notice said.

As such, NBFIs will have to settle new applications by September.

Loans that turned sour within December 31 last year can enjoy the relaxed policy, which allows NBFIs to waive 50 per cent of the interest on NPLs.

The defaulters will get the waiver facility after they repay the entire amount of the bad loan within a year.

The relaxed repayment facility will be annulled if the defaulter fails to pay back the loan on time.

NPLs in the country's 34 NBFIs stood at Tk 11,757 crore as of September last year, up 17 per cent from nine months ago, central bank data showed.