BB offers special facility to leather sector to regularise defaulted loans

Bangladesh’s central bank, the Bangladesh Bank (BB), recently floated special rescheduling facility for leather sector entities which were relocated to Savar Leather Industrial Park, allowing the banks to regularise loans of these entities upon 2 per cent down payment by the businesses.

The circular issued by the central bank in this direction on 6 January (Wednesday), reportedly, underlined that due to unavoidable reasons the leather entities have become defaulters, consequent to which maintaining regular flow of credit to the leather sector has become impossible.

Underlining that entities of the leather sector which have already received loan restructure, rescheduling and interest waiver will be considered illegible to get the new exit policy, the BB, reportedly, maintained that to avail the facility, borrowers of the sector will have to apply to respective banks by 31 March 2021 upon payment of the down payment while adding that under the policy, the leather entities can be awarded rescheduling facility on the outstanding loans upon 2 per cent down payment by the borrowers.