BB relaxes interest on all types of bank loans

BB relaxes interest on all types of bank loans

Staff Correspondentdaily-bangladesh.com

Published: 19:53 3 May 2020   Updated: 05:21 4 May 2020

Graphics: Daily Bangladesh

Graphics: Daily Bangladesh

Bangladesh Bank has directed to hang up interest on all types of loans to curb the impact of the coronavirus outbreak on the indebted people and institutions in the country. Profits imposed on loans will have to be transferred to the 'interest-free blocked accounts' from April 1 to May 31. No interest can be charged from the borrower transferred as blocked till further instructions.

On Sunday, the Banking Regulation and Policy Department of Bangladesh Bank issued a directive in this regard.

According to the directive, various financial incentive packages have been announced, including low-interest loans through the banking system, to revive and keep the country's economic activities afloat in response to the probable economic impact of the coronavirus outbreak in Bangladesh.

However, at the moment, it has been decided to suspend the interest for two months from April 1 to May 31 on all types of loans or investments. No interest can be charged from the customers till further instructions. This form of interest cannot be transferred to the income sector of the bank.

If a bank has already transferred the interest of a loan to the income sector, it has to be adjusted with reserve entry. The adjustment of profits retained as blocked will be informed later.

DailyBangladesh/PR