Time to transfer jute industry loans to block accounts extended

The Financial Institutions Division has extended the opportunity of transferring outstanding bank loans of the jute sector to block accounts.

Borrowers will be able to enjoy a full interest-free facility on loans transferred to block accounts for 10 years.

Outstanding loans until 30 June last year can be transferred to block accounts by making a 2% downpayment.

The Banking Regulation and Policy Department (BRPD) of the Bangladesh Bank issued a circular on Monday regarding the 17 December, 2020 notification of the Financial Institutions Division.

In 2018, the authorities first allowed borrowers to enjoy moratorium facilities on their loans for two years; they did not need to pay any installments against their loans.

Additionally, they were allowed to repay their loans along with their previous interest during the following eight years.

In the notification of 2018, eight-point instructions were given regarding the transfer of outstanding loans of the jute industry to block accounts.

The notification said that in case of failure to pay four consecutive installments or over one year, the facility would be cancelled and the loan would have to be recovered at the prevailing interest rate and as per conventional rules.

Loans taken from the refinancing scheme for the jute sector will not come under the block facility.