In accordance with the previous circular on loan classification, Bangladesh Bank by virtue of section 45 of the Bank Companies Act 1991 has directed all scheduled banks not to downgrade the classification of any borrowers for defaulted loans between the period of 1 January 2020 and 30 June 2020 which has been further extended till 30 September 2020. Additionally, by exercising its powers under the Financial Institutions Act 1993, the Bangladesh Bank has also directed the financial institutions to do the same.

Apart from a stay on credit loan classification as mentioned above, the Bangladesh Bank may also consider offering a suspension to the loan borrowers on their classified loan repayments. This suspension can be termed as a payment holiday as this allows the borrowers to defer their due payments for a specified period. In simple terms, the effect of a suspension can more likely be called as a deferral to their scheduled loan payment granted to them until 30 September 2020.