In six months defaulted loans have been rescheduled to about 6 thousand crore rupees

According to the latest data of Bangladesh Bank (BB), despite the reduced installment facility on term loans, Bangladeshi banks have rescheduled Tk 5,960 crore worth of defaulted loans in the first six months of 2022 (January-June) and Tk 2,816 crore interest has been waived during this period.

According to Bangladesh Bank, state-owned banks rescheduled loans worth Tk 1,300 crore and private banks rescheduled Tk 4,150 crore. The remaining Tk 779 crore has been rescheduled by specialized banks.

As businesses have been hit by the adverse effects of the Covid-19 pandemic, Bangladesh Bank has suspended loans and reduced installment facilities during the pandemic. Despite this move, the accumulated defaulted loans rose to Tk 1.25 lakh crore till June this year. Banks have approved the rescheduling of around Tk 5,960 crore.

Bankers said that many small and big businesses have been affected due to the epidemic. Many have stopped making regular loan payments citing the pandemic. Again, the concerned bank is not able to collect the loan due to irregularities and corruption.

As a result, the amount of non-performing loans is increasing and currently non-performing loans account for about 9 percent of Bangladesh’s total debt.

Tags: months defaulted loans rescheduled thousand crore rupees

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