Considering the current situation, Bangladesh Bank has instructed all banks and financial institutions to not charge any extra fees for late payment of credit card bills, and loan installments. The central bank issued a directive to banks and financial institutions in two separate notifications in this regard on Wednesday. Those who had time to pay their loan installments, credit card bills, and savings deposit installments during the curfew and public holidays can make the payments till July 31. Bangladesh Bank has said that banks and financial institutions will not collect any additional interest, penalties or late fees for installments/card bills payable between July 18 and 25. No savings scheme can be canceled due to failure to pay installment during this time. According to the central bank notification, many borrowers and credit card users have not been able to pay their dues to the banks on time due to the current situation. Read more: Offices, banks reopen for four hours; Commuters suffer amid traffic gridlock Besides, many depositors could not deposit installments of various savings schemes including Deposit Pension Scheme (DPS) on time. Under the circumstances, the new guidelines will be effective from July 18 to 25 in respect to dues of loans, credit card bills, and installments of various savings schemes including DPS. The Bangladesh Bank directive stated that if the loan and credit card dues are paid by July 31, any interest or profit and penalty interest, additional interest, excess profit, late fee on the outstanding amount will be deducted. If installments of savings schemes are paid by July 31, no late fee or penalty can be collected. Apart from this, interest or profit and penalty interest or late fee on any loan or credit card and any kind of late fee or penalty on various savings schemes that has already been collected has to be refunded or adjusted. Read more: Overcrowding and long queues as banks reopen today for only 4 hours

Personal loans are a great option for those looking to make a big financial decision in their life. It could be buying a new car, planning a wedding, going on a vacation abroad, paying for higher studies, or getting a new home. Personal loans offer secured debt consolidation as they cover tons of financial needs. While taking out a personal loan is pretty straightforward, you should consider some key aspects before going for one.  Things to Consider Before Taking Out a Personal Loan from a Bangladeshi Bank  Purpose of the Loan  Personal loans are mostly taken as a form of investment source. It can be debt consolidation or a major investment for future benefit. Regardless, a loan means incurring a liability until it is paid off. It is important to properly assess whether taking the loan is a feasible decision or not.  It is also important to consider alternative funding sources like personal savings, emergency funds, or borrowing from family.  Interest Rate One of the prime things to consider is the interest rate accrued to the loan capital. Currently, Bangladesh Bank has a regulation in place that outlines the upper limit that can be charged by the banks. The Bangladesh Bank interest rate regulation can be checked from the lending rate of scheduled banks (https://www.bb.org.bd/en/index.php/financialactivity/interestlending). Read more: Top 10 Strongest Currencies in the World as of May 2024 Additionally, a borrower can use websites like aamartaka.com to compare the rates among banks, check eligibility criteria, and even apply through their designated channels. Understand the Eligibility Criteria  The first thing to consider while applying for a personal loan is to understand the eligibility criteria. Personal loans can come in both secured and unsecured options. Granted that the unsecured options will incur a higher interest rate.  However, most banks require a set of eligibility criteria for one to apply for a loan. For example, the valuation of collateral against the loan or the liquidity level of the applicant. Other aspects like personal history verification, job verification, income, and salary credit account can also be the eligibility criteria depending on the lender. Another key aspect is the history of bankruptcy or loan default which might disqualify a person from applying for a personal loan.  Have a Good Credit Rating  A credit history is one of the key determinants of loan disbursement abroad. One can’t even apply for a credit card without a stable credit rating, let alone a personal loan. Credit rating determines the creditworthiness of an individual, that is how likely they are to repay a loan based on previous credit history.  Read more: How to Buy Bangladesh Government Treasury Bond: Everything You Need to Know There are several credit scoring systems globally like FICO score and VantageScore. However, in the case of Bangladesh, the banks and NBFIs do not follow a set credit score while approving loans. Alternative credit scoring like asset ownership, utility payments, device data, and rental payments are taken into consideration. It is mostly because a large portion of the demographic is unbanked or underbanked to make credit scoring the sole determinant for loan approval. 

Independent MP AK Azad on Monday (February 12, 2024) demanded a list of those who have laundered money abroad taking loans from banks be placed in Parliament. Azad, who was elected MP for the first time, came up with the demand while participating in the discussion on the thanksgiving motion on the President’s speech. He said that Prime Minister Sheikh Hasina is totally against corruption and Awami League's manifesto also cited that. “First of all, good governance will have to be established in the banking sector,” Azad said. Read more: Bangladesh Bank sets an 11-point roadmap to realise default loans Welcoming Bangladesh Bank's roadmap for reforming the banking sector, Azad, also President of Newspapers Owners Association of Bangladesh (NOAB), said the amount of defaulted loans in Bangladesh is around Tk 1,45,633 crore. “But in reality, the amount is much more. But through write off, the amount of debt is shown less. Those who have taken loans and invested in factories and failed to repay, may be exempted subject to investigation,” he said. He demanded to bring to justice those who did not invest loan money in any business, and instead laundered the money. “They made home at Begum Para, and second homes. Their list should be published in the parliament,” he demanded. Read more: Bank MDs working under increased stress due to default loans, board interference: Experts He also commented that Bangabandhu's dream will not be realised unless they are brought under the law. The independent MP said that those who looted banks are responsible for the rise in commodity prices and inflation. Azad said that he wants to be accountable to the countrymen and voters through this parliament. Azad also said he wants to make the parliament effective and lively through constructive criticism of the government. He expected cooperation of the Speaker in this regard. Read more: Businesses should get opportunities to turn around before wholesale declaration of loan defaulters: FBCCI President

French President Emmanuel Macron has said his country will sign an agreement with Bangladesh to finance climate-change adaptation and loss and damage in the first half of 2024. The French Development Agency will be contributing €1 billion ($1.1 billion) in investment, and the IMF will be extending up to $1 billion worth of SDRs in new loans, Macron said. "This also implies identifying, on a global scale, governance mechanisms for the most crucial challenges we will have to face in the coming years, access to water being one of the most pressing. In this regard, France and Kazakhstan will convene a One Water Summit during the United Nations General Assembly in September 2024," wrote the French president in an article, titled "Pillars of Green Wisdom," published by the Project Syndicate. For the most vulnerable countries, he said, they must create conditions that enable them to finance their climate-change mitigation and adaptation efforts and access the green technologies that are the new engines of growth. Russia launches the biggest aerial barrage of the war and kills 30 civilians, Ukraine says "This implies going further than traditional ‘official development assistance’ and doing for vulnerable countries what rich countries did for themselves during the COVID-19 pandemic: pursue an unorthodox fiscal and monetary policy," wrote President Macron. "The results are already there: in two years, following the initiative we took in Paris in the spring of 2021, we have released over $100 billion in special drawing rights (SDRs, the International Monetary Fund’s reserve asset) for vulnerable countries," he wrote. By activating this “dormant asset,” Macron said they are extending 20-year loans at near-zero interest rates to finance climate action and pandemic preparedness in the poorest countries. "We have begun to change debt rules to suspend payments for such countries, should a climate shock occur. And we have changed the mandate of multilateral development banks, such as the World Bank, so that they take more risks and mobilize more private money," he said. Macron said they are going to continue working on this, including within the framework of the new loss and damage fund, where they must mobilize new private insurance mechanisms in the face of climate risk. "We will start from the specific needs of the hardest-hit countries." The French president said they will not succeed if they cannot reform the World Bank and the IMF, which play a prominent role in establishing the norms and financing the green transition on a global scale. Jaishankar meets Putin and Lavrov in Moscow, praises growing trade Eighty years after their creation, these institutions remain underfunded, relative to the size of the global economy and population, and emerging and developing countries continue to be shut out of their governance, he said. "But we will not be able to agree on goals and financing until every country negotiating is on an equal footing.To this end, we must review Bretton Woods governance, and ask emerging countries to assume their share of accountability in financing global public goods," said Macron. He said, “We must not allow the ongoing war in Ukraine and the fighting in Gaza to distract us from collective efforts to reduce our greenhouse-gas emissions, achieve carbon neutrality by 2050, save our biodiversity, and fight poverty and inequality.” The world’s most advanced economies, which have also been the main CO2 emitters since the industrial revolution, must move away from fossil fuels, he noted. He also wrote, “Science has set the trajectory: we must move away from coal by 2030, from oil by 2045, and from gas by 2050. While the G7 countries bear the greatest responsibility, China, which is now the second-largest emitter in history, must be fully committed, too.”  “While it is the G7’s responsibility to move away from coal by 2030 (France will have done so in 2027), emerging economies are now the biggest coal consumers. In these countries, we need to speed up the financing of renewables, as well as nuclear power, which, as a manageable and a decarbonized energy source, must play a key role,” he wrote. Ukraine celebrates Christmas on Dec. 25 for the first time, distancing itself from Russia  “We must also put private financing and trade at the service of the Paris agreement. The cost of investment must be higher for players in the fossil-fuel sector. We need a green interest rate and a brown interest rate. Similarly, we need a climate clause in our trade agreements, because we cannot simultaneously demand that our industries become greener while supporting the liberalization of international trade in polluting products.  “Moreover, we must focus on building the basis of a ‘bio-economy’ that will pay for the services provided by nature. Nature is our best technology to sequester carbon on a large scale. The countries with the most important carbon and biodiversity reserves, especially in the three main tropical forest basins, must obtain much greater resources, determined on a country-by-country basis, in exchange for their stewardship of these vital reserves. France has already launched three contracts of this type at COP28, with Papua New Guinea, the Republic of the Congo, and the Democratic Republic of the Congo,” Macron wrote.  “But reform of the voluntary carbon market is essential. We need to create an international carbon and biodiversity exchange that will allow governmental and private actors to organize voluntary carbon credit swaps, based on sufficiently ambitious criteria to avoid greenwashing, and to remunerate local communities. “The ocean is our most important carbon sink, and we must protect it. France and Costa Rica will convene the third United Nations Ocean Conference in Nice in June 2025, with the aim of updating international law, including on the prohibition of plastic pollution and on protection of the deep sea and seabed. These reforms would also enable the development of national strategies for seaboard protection by countries with exclusive economic zones,” the French president wrote. ‘A lie’: French ambassador dismisses claim of journalists’ visa requests being denied.

In a significant development for Bangladesh’s aviation sector, the country and Japan today signed the exchange of notes of the 44th Official Development Assistance (ODA) yen loan. This crucial funding, amounting to 76,635 million yen (approximately USD 540 million), is earmarked for the expansion of Dhaka’s Hazrat Shahjalal International Airport (HSIA). Is Dhaka ready for a Westeros Winter? The installment will be used for constructing Hazrat Shahjalal International Airport’s Third International Passenger Terminal, a Cargo Terminal, and associated facilities. The agreement was formalized by Iwama Kiminori, Japanese Ambassador to Bangladesh, and Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division, Ministry of Finance. This latest installment brings the total of the 44th round of yen loans to a substantial 324,191 million yen (around USD 2.21 billion). A corresponding loan agreement was signed by Yoshida Hiroshi, Senior Representative of JICA's Bangladesh Office, and Shariar Siddiky, emphasizing the commitment to meet the growing aviation demands, enhance airport capacity, improve accessibility, and bolster security. This expansion is anticipated to significantly contribute to Bangladesh’s economic development and regional connectivity. Prime Minister Sheikh Hasina, at the recent soft opening of Dhaka Airport’s Third Terminal, highlighted the importance of Japanese companies’ involvement in this grand project. Ongoing intensive discussions between the Japanese consortium and airport authorities reinforce Japan’s commitment to fostering Bangladesh’s development through this strategic partnership, aiming for mutual prosperity.  Penalty for code of conduct violation depends on investigation report: EC Sultana The 44th ODA loan package specifically targets the Hazrat Shahjalal International Airport Expansion Project (Phase III). The terms include an interest rate of 1.30% per annum, with a repayment period of 20 years following a grace period of 10 years, as outlined by the Japanese Embassy in Dhaka. This agreement marks a pivotal step in enhancing Dhaka’s status as a key aviation hub in the region.

The Asian Development Bank (ADB) and the Government of Bangladesh on Tuesday (November 28, 2023) signed a $100 million loan agreement to improve computer science, software engineering, and information technology (IT) programs in three universities in Bangladesh. Md. Shahriar Kader Siddiky, Secretary, Economic Relations Division (ERD), and Edimon Ginting, Country Director, ADB, signed the loan agreement on behalf of Bangladesh and ADB, respectively, at a ceremony at ERD in Dhaka. “This project will help accelerate fourth industrial revolution technology adoption, realize the vision of Digital Bangladesh, and enable the country to reap the demographic dividend by creating digitally qualified young human resources and entrepreneurs,” said ADB Country Director Edimon Ginting. “This new initiative builds on ADB’s ongoing skills development support through industry partnerships to increase competitiveness and foster innovation,” he said. Read: ADB to provide $200 million to promote energy efficiency, transition in Bangladesh The Improving Computer and Software Engineering Tertiary Education Project will upgrade the computer science and engineering, software engineering, and information technology degree programs of the leading public universities in Bangladesh. The universities receiving the funding are: Bangladesh University of Engineering and Technology (BUET), University of Dhaka (DU), and Jashore University of Science and Technology. These programs will adopt blended learning techniques and integrate the latest technologies such as artificial intelligence, robotics, and internet of things. These programs will seek international accreditation to ensure that students get updated curricula that adhere to international standards. Read: ADB to lend $336.5 million to Bangladesh to help develop vaccine production ADB will support the establishment of modern classrooms and laboratories, collaboration and start-up spaces, and auxiliary facilities in the three universities. These facilities will incorporate climate- and disaster-resilient designs, energy- and water-saving features, and will include women-friendly amenities and services. The universities will develop capacities of teachers to be proficient in new instructional approaches and emerging digital technologies. The students and teachers from the three and other universities will also work with industry partners to come up with innovative solutions through joint research and development. Mandatory internship opportunities, career counseling, and industry placement will be provided to undergraduate students, particularly for women. Read: ADB provides $90 million for clean water, sanitation services in the Hill Tracts

European Investment Bank (EIB) President Dr Werner Hoyer has appreciated the use of Euro 1 billion loan portfolio for Bangladesh since 2000 in areas of shared priorities. He noted, in particular, progress in projects – under implementation – under water treatment and rail link upgradation. Prime Minister Sheikh Hasina held a meeting with the EIB President recently at her hotel suite in Brussels. The prime minister referred to the achievements made so far in ensuring safe water and sanitation for nearly 97 percent of the population in Bangladesh. Also read: ‘Dear PM Hasina, 50th anniversary of EU-Bangladesh relations is the occasion to take our partnership to the next level’ She requested EIB to consider supporting river dredging, water conservation, and surface irrigation. PM Hasina also mentioned the initiatives taken by her government to develop dual-track railway, to promote cost-effective passenger and container traffic. She appreciated the interest of multilateral development banks in financing such impactful connectivity projects. The EIB president referred to the loan package of Euro 250 million signed in 2021, said the Ministry of Foreign Affairs on Thursday (October 26, 2023). He shared that the disbursement of the amount would commence soon for the purpose of health system strengthening. Also read: PM leaves for Belgium Tuesday on a significant EU visit The EIB president observed that Bangladesh was in an ideal situation to roll out vaccine production. The prime minister informed him about the measures taken by the government to develop a vaccine production facility and a molecular testing laboratory. She suggested that EIB extend support for necessary infrastructure development for these initiatives. She reiterated that Bangladesh could support EU’s efforts to diversify production of pharmaceuticals, vaccines and medical equipment. She also discussed possible support measures for combating dengue outbreaks, including through vaccines. The EIB is the largest multilateral public bank in the world. In 2022 it financed around Euro 10.8 billion in investments outside the European Union via EIB Global, the arm of the bank created that year for activities beyond Europe. Since the beginning of its operations in Bangladesh in 2000, the EIB has supported six projects in the country and has invested more than Euro 670 million in water, transport and health projects. Also read: PM Hasina asks EU to extend GSP+ facilities for 6yrs to graduating LDCs like Bangladesh END/UNB/MK/KW

Sri Lanka has repaid $50 million to Bangladesh, an official of Bangladesh Bank has said. Bangladesh had earlier lent $200 million amid economic crisis in the island nation. Also read : Ambassador Fick to visit India, Sri Lanka from August 17 to 23 Md Mesbaul Haque, Executive Director and Spokesperson of the central bank, told UNB: “Out of the $200 million loan given to Sri Lanka, we have received an installment of $50 million. Another installment is due later this month. We expect them to repay the loan in full within this year.” Sri Lanka took the loan in 2021 under the currency swap system with the condition of repayment within three months. Also read : French President Macron visits his counterpart in Sri Lanka But it failed to repay the loan on time and the island nation wanted an extension of time due to political chaos amid domestic financial turmoil. Bangladesh had extended the deadline for several times. Also read : Bangladesh will never be like Sri Lanka: MA Mannan According to BB, Bangladesh released 50 million dollars in the first phase on August 19, 2021. The second round of $100 million was given on October 30 of that year. Then $50 million dollars was given in November. Under an agreement, the money was supposed to be returned with interest between August, October, and November last year. But the country failed to repay the loan on time.

The Asian Development Bank (ADB) on Tuesday (June 14, 2023) approved a $400 million loan to Bangladesh to advance reforms in domestic resource mobilization, improve efficiency and productivity of public spending, and help small businesses – especially women-led businesses – to access low-cost innovative bank financing. This loan is ADB’s second subprogram of the Sustainable Economic Recovery Program that was launched in October 2021 to support economic recovery after the COVID-19 pandemic. “This subprogram enables Bangladesh to enhance revenues, promote efficiency and transparency in public spending and public procurement, deepen the reforms of state-owned enterprises, and help small businesses and microentrepreneurs to access low-interest affordable credits from the banking sector,” said ADB Principal Public Management Economist for South Asia, Aminur Rahman. Read: Danish Minister Dan Jørgensen in Dhaka “The subprogram, with a strong focus on gender, climate change, and digitization, enables the government to strengthen its efforts to support income generation for the poor and vulnerable,” he added. The program will enhance income tax collection through the adoption of the new Income Tax Act, reduce tax loopholes, strengthen compliance and enforcement measures, and broaden the country’s tax net. Transparency and efficiency in public procurement will be enhanced through strengthening electronic procurement and electronic payment systems, while approval of public projects will be facilitated through the newly launched digital system of public project appraisal and approval process, according to ADB. Read: Letter from 6 members of European Parliament reflects views of signatories, Ambassador tells UNB  The new package supports the launch of innovative financing services by Bangladesh Bank through commercial banks to provide low-cost microcredit using digital channels and e-wallet. It facilitates bank lending to marginalized and landless farmers, small traders, and low-income earners. Micro and small businesses and women entrepreneurs who do not possess land or property will also be able to access finance based on their trade receipts and other forms of nonfixed collaterals, such as small equipment and machinery. Promoting gender equality and social inclusion and addressing the climate change agenda in public investment and national budgeting are some of the key activities of this new program. Promoting gender equality and social inclusion and addressing the climate change agenda in public investment and national budgeting are some of the key activities of this new program. Read: UN asked to engage more effectively with Myanmar to commence Rohingya repatriation

World Bank will provide USD 2.25 billion as loan to Bangladesh to develop various sectors, including regional trade and connectivity, disaster preparedness and environmental management. A loan agreement was signed on Monday (May 01, 2023) between Bangladesh and the World Bank for implementing five projects. Prime Minister Sheikh Hasina and World Bank President David Malpass witnessed the exchanges of the financing agreement. Read: Stay with us in implementing future physical & social mega projects: PM Hasina to WB This loan agreement comprises five projects: ·        Accelerating transport and trade connectivity in Eastern South Asia (ACCESS) – Bangladesh Phase-1 Project worth USD 753.45 million. ·        USD 500 million Resilient Infrastructure Building Project (RIVER) for resilience, adaptation and vulnerability reduction that will be the first major investment to support Bangladesh’s Delta Plan 2100. It will help improve disaster preparedness against inland flooding. ·        USD 500 million First Bangladesh Green and Climate Resilient Development (GCRD) project is the first such credit that will help the country’s transition to resilient development. ·        USD 250 million Sustainable Microenterprise and Resilient Transformation (SMART) project aims to help transform the microenterprise sector into a more dynamic, less polluting, resource efficient and climate resilient growth sector. ·        USD 250 million Bangladesh Environmental Sustainability and Transformation (BEST) project to help strengthen environmental management and promote private sector participation in green investment. Read More: External pressure behind World Bank's withdrawal from Padma Bridge, says PM Hasina urging it to look into future