Regulator asks microlenders to pause instalments from flood victims

Bangladesh's Microcredit Regulatory Authority (MRA) has ordered NGOs not to collect installments, for at least for two months, from the victims of recent floods.

Floods have wreaked havoc on the northern and northeastern region over the past two months, damaging rice and other crops on 170,000 hectares of land.

In a circular on Monday, the MRA advised NGOs to hand out new loans to the flood victims and reschedule old ones.

It also advised them to allow borrowers to entirely withdraw savings even if they were yet to fully repay loans, since most victims in the 17 flood affected districts were poor.

The Bangladesh Bank has already urged other banks to support the flood victims.

Earlier this month, Water Development Board said water levels in the rivers were going down and there were no possibilities of fresh flooding.

The MRA asked the NGOs to provide food and medicine to the victims and assist their rehabilitation.

They will have to inform the regulator about the measures they will take to assist the flood victims by Oct 31.