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The Bangladesh Bank on Wednesday relaxed the loan classification and provision-related rules for banks against the credit facility issued to the cottage, micro, small and medium entrepreneurs for the outgoing year 2021.
The central bank issued two separate notices in this regard on the day, allowing banks to keep CMSME sector loans unclassified if they borrowers clear 15 per cent of the overdue amount for the period of January-December of the year 2021 by December 31, 2021.
The central bank earlier allowed banks to keep any loans unclassified against recovery of 25 per cent of the overdue amount within December 31, 2021.
Besides, the central bank also allowed banks to realise the entire year’s interest imposed on the CMSME loans in their income accounts if such loans remain unclassified.
Banks have also been issued relaxation in maintaining additional provisioning against CMSME loans.
Instead of maintaining 2 per cent additional provision, banks are allowed to keep aside 1.5 per cent additional provision against CMSME loans.
The additional 2 per cent provision requirement against other loans would remain unchanged.
Earlier, banks were asked to keep additional 2 per cent provision against all sorts of loans in addition to the existing regular provisions against loans.
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