BB restructuring evaluation committee receives pleas from 3 business giants for Tk70bn classified loans

Three leading business conglomerates of Bangladesh have applied for revised debt restructuring facilities to Bangladesh Bank’s evaluation committee.

Banking Regulation and Policy Department Deputy General Manager Roop Ratan Pine told bdnews24.com they had received eight restructuring applications for more than Tk 70 billion in classified loans.

The applications of Beximco, Jamuna and Thermax groups had been forwarded to the selection committee.

Faced with the demands of several business groups including Beximco, the central bank on Jan 29 issued revised debt restructuring guidelines with a June 30 deadline for submission of application.

Pine said several banks had phoned the central bank saying that a few of their clients wished to avail themselves of the facilities.

“So, we will receive the applications which may come within one or two days,” he added.

The central bank official said the restructuring facilities were for loans of at least Tk 5 billion held by a single business or group.

The guidelines give term loan defaulters 12 years for payback. The time is six years for demand and current loans.

The businesses availing themselves of the facilities cannot declare any dividend for the first three years afterwards.

If the central bank approves the restructuring, the debtors would enjoy lowered interest rates, extension of payback time and smaller down payments.

Central bank officials said they received the applications for rescheduling of Beximco’s default loans amounting to Tk 49.51 billion from Sonali Bank, Janata Bank, National Bank and AB Bank.

Application to reschedule Tk 6.66 billion Thermax Group loans was sent by Janata Bank.

Dutch-Bangla Bank, Janata Bank, Mutual Trust Bank and United Commercial Bank applied for rescheduling Tk 14.11 billon loans defaulted by Jamuna Group.

Southeast Bank applied for rescheduling Keya Group, Mutual Trust for Abdul Monem Limited, Janata Bank for the Ratanpur Group and AB Bank for Shikder Group.

The applications propose extension of the payback period to 12 years and revision of interest rates to 10-12 percent.

Bangladesh Bank Executive Director Naushad Ali, who heads the selection panel, told bdnews24.com: “We have seen the applications from three groups.

“We have asked the banks for the documents that are missing. We will decide on the rescheduling after evaluating everything.”

Beximco Group had last year applied to the central bank governor asking that over Tk 50 billion of the default loans restructured. S Alam and Mostofa Group also sought similar facilities.

After the Bangladesh Bank Board of Directors approved the rescheduling guidelines, Deputy Governor SK Sur Chowdhury said the facilities were offered considering political instability, infrastructure problems and international market conditions.

Pine told bdnews24.com that the central bank had received applications from 15 business groups to restructure loans amounting to Tk 125 billion.

Shikder Group applied for loans as much as Tk 6.86 billion, Ratanpur Group for Tk 4.35 billion, Abdul Monem Group for Tk 4.97 billion, Keya Group for 8.79 billion, Ibrahim Group for Tk 3.4 billion, SA Group for Tk 7.18 billion, BR Spinning for Tk 4.72 billion, Can-Am Garments for Tk 150 million, Deshbandhu Sugar Mills for Tk 560 million, Enontex for Tk 11 billion, Givenchy Group for Tk 600 million and Nasa Group for Tk 2 billion.