BB forms panel for vetting loan recast of big borrowers

Bangladesh Bank (BB) has formed a six-member inter-departmental committee to scrutinise the applications for restructuring loans of big borrowers, officials said Wednesday.

bbHeaded by BB Executive Director Mohammad Naushad Ali Chowdhury, the panel is assigned to examine the terms and conditions set by the central bank earlier for restructuring such large loans properly, reports the Financial Express.

“We’ll submit the applications after scrutinising to the Banking Regulation and Policy Department (BRPD) of the central bank for next course of action,” a committee member told the FE.

The interested borrowers will have to apply for such a recast of their loan portfolios by June 30 this year.

Earlier on January 29 last, the central bank issued a circular asking the commercial banks to set up special cell for ensuring monitoring and supervision on the restructured credits.

The BB board of directors approved the policy on January 27 last allowing loan rescheduling only if businesses are hit by global or domestic shocks.


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