The Bangladesh Bank yesterday drew up a policy to rebate interest for borrowers for the April-May period as part of its move to give a breathing space to them from the ongoing economic fallout.
The borrowers, who have taken out a maximum of Tk 1 lakh in loans from banks, will not have to give any interest, according to a notice issued by the central bank.
Banks will have to waive 2 percentage points interest for the borrowers, whose credit amount is between Tk 1 lakh and Tk 10 lakh.
The large borrowers with loans of more than Tk 10 lakh will be allowed to get 1 percentage point rebate. Large borrowers will get a highest interest rebate of Tk 12 lakh as per the BB decision.
Banks will enjoy a subsidy of Tk 2,000 crore from the government to rebate the interest. This means banks will not rebate any amount by giving money from their own source.
The banking regulator directed banks on May 3 to transfer all interest accrued or to be accrued between April 1 and May 31 this year from all of their loans to an interest-free blocked account.
The BB calculated that a total of more than Tk 16,000 crore in interest was blocked by banks in the two months, of which Tk 2,000 crore will be rebated.