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Loan Terms May Be Stretched For At-risk Sectors: BB PDF Print E-mail
Sunday, 29 March 2009

The government is actively considering extension of loan recovery periods for sectors vulnerable to the global recession, said the central bank chief on Saturday.

"But the government is unwilling to redefine 'non-performing' loans," Bangladesh Bank governor Salehuddin Ahmed told reporters newsmen.

He also feared that loan disbursement in vulnerable sectors would be very risky.

"Our main export sectors, RMG, textiles and others, are vulnerable to global meltdown," he said.

"Creation of ample employment opportunities inside the country and expansion of the local market can prove effective in tackling global meltdown," he said.

'7 urgent measures'

Finance minister AMA Muhith said earlier in the week that the government was set to decide on seven urgent precautionary measures to safeguard export industries against global recession.

Redefining 'non-performing' loans (changing CIB rules), was one of the measures.

Speaking after the first sitting of the recession taskforce on Tuesday, Muhith termed the recession unprecedented in severity, with possibly disastrous effects on all export sectors including garments, frozen food, leather and jute.

"The government is set to take an immediate decision on the proposed measures," said Muhith.


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