Economic Reporter :
Finance Minister AHM Mustafa Kamal Monday said that the government would facilitate the good loan defaulters as it is going to bring down the interest rate at flat seven percent for them to repay their loans.
“There are two types of loan recipients and defaulters- good and dishonest- and we’ll provide facilities to those good loan defaulters while penalize the dishonest loan defaulters… We will reduce the interest rate for good loan recipients,” he said the newsmen after chairing a meeting on the country’s banking and financial sectors held at his ERD office in the city’s Sher-e-Bangla Nagar area.
Bangladesh Bank Governor Fazle Kabir, Finance Division Secretary Abdur Rouf Takukder, Financial Institution Division Secretary Md Asadul Islam were present, among others, at the meeting.
Clarifying the method of apparently addressing the Non Performing Loans (NPLs), Kamal said this facility would only be provided to good loan recipients who tried to pay their loans in different times, but somehow failed.
He said special audits would be carried out to ascertain who are good or who are bad while asking how to identify the good and bad loan recipients and
defaulters.
“They will have to make two percent down payment on all types of loans – big or small- and seven percent interest rate will be charged on the rest of loan balance to be repaid in highest 12 years on quarterly basis. The interest rate will be single, not compound,” he added.
The minister also noted that it’s a specific case for specific purpose to give scope to the loan recipients and the loan defaulters to have an exit.
He also informed that a circular in this regard would be issued maximum within one month and it would come into effect from first of May.
The new loan recipients would now receive loans at market based interest rate so that they need not to incur any loss, Kamal said, adding, “We’ll provide ample scope to service their loans,”
Beaides, he informed that the government is forming an Asset Management Company along with framing the Insolvency Act to address the NPLs.
The Finance Minister said the immediate past Finance Minister Abul Maal Abdul Muhith first formed a committee to address various problems in the bank and financial sector.
Finance Minister AHM Mustafa Kamal Monday said that the government would facilitate the good loan defaulters as it is going to bring down the interest rate at flat seven percent for them to repay their loans.
“There are two types of loan recipients and defaulters- good and dishonest- and we’ll provide facilities to those good loan defaulters while penalize the dishonest loan defaulters… We will reduce the interest rate for good loan recipients,” he said the newsmen after chairing a meeting on the country’s banking and financial sectors held at his ERD office in the city’s Sher-e-Bangla Nagar area.
Bangladesh Bank Governor Fazle Kabir, Finance Division Secretary Abdur Rouf Takukder, Financial Institution Division Secretary Md Asadul Islam were present, among others, at the meeting.
Clarifying the method of apparently addressing the Non Performing Loans (NPLs), Kamal said this facility would only be provided to good loan recipients who tried to pay their loans in different times, but somehow failed.
He said special audits would be carried out to ascertain who are good or who are bad while asking how to identify the good and bad loan recipients and
defaulters.
“They will have to make two percent down payment on all types of loans – big or small- and seven percent interest rate will be charged on the rest of loan balance to be repaid in highest 12 years on quarterly basis. The interest rate will be single, not compound,” he added.
The minister also noted that it’s a specific case for specific purpose to give scope to the loan recipients and the loan defaulters to have an exit.
He also informed that a circular in this regard would be issued maximum within one month and it would come into effect from first of May.
The new loan recipients would now receive loans at market based interest rate so that they need not to incur any loss, Kamal said, adding, “We’ll provide ample scope to service their loans,”
Beaides, he informed that the government is forming an Asset Management Company along with framing the Insolvency Act to address the NPLs.
The Finance Minister said the immediate past Finance Minister Abul Maal Abdul Muhith first formed a committee to address various problems in the bank and financial sector.
