The Bangladesh Bank has announced a loan rescheduling facility for the country’s shipbuilding sector, aiming to support businesses impacted by the Covid-19 pandemic and the Russia-Ukraine war’s economic volatility. In a recent notice, the central bank outlined the relaxed policy, allowing banks to reschedule defaulted loans from the industry for up to 10 years, including a 2-year grace period. To avail of the facility, borrowers are required to make a down payment of 2.50 percent. However, loans obtained through scams and irregularities are excluded from the rescheduling option. The Bangladesh shipbuilding industry, concentrated mainly in Dhaka, Chattogram, Narayanganj, Barishal, and Khulna, comprises over 200 companies. According to the Bangladesh Investment Development Authority (BIDA), the industry contributes approximately Tk 15,000 crore to the country’s annual earnings. This initiative by the Bangladesh Bank aims to provide much-needed relief and stability to the shipbuilding sector during challenging times.
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