Microfinance institutions suspend loan instalment collection in flood-affected areas

Prioritising humanitarian assistance, microfinance institutions across the country have come forward to support the people in flood-affected areas by offering relief and financial aid. From the outset, the collection of loan installments from all members in these areas has been suspended.

In line with the directives from the government’s Microcredit Regulatory Authority (MRA), microfinance institutions have already begun distributing essential items, including emergency food and medicine, in coordination with local authorities.

The Credit and Development Forum (CDF), the national networking organisation for the microfinance industry in Bangladesh, is committed to provide assistance for relief operations and post-flood rehabilitation work in close collaboration with the government.

CDF has noted with great regret that certain groups have recently used various social media platforms to spread negative propaganda regarding microfinance institutions, falsely claiming that they are collecting loan instalments from those affected by the floods. CDF has expressed deep concern over these baseless, misleading, and deliberately malicious claims.

In reality, CDF member institutions are doing their utmost to support their members and the affected communities in the flood-hit areas. At the same time, communication is being maintained with clients, and initiatives have been taken to return their savings as needed.

In this challenging situation for the country, any form of false propaganda, rumours, or intentional dissemination of misinformation could severely disrupt rescue operations, relief distribution, and post-flood rehabilitation efforts -- outcomes that are highly undesirable. CDF urges everyone to refrain from engaging in such negative activities.

Yesterday, Saturday, representatives of Non-Governmental Organisations (NGOs) and community organisations met chief adviser of the Interim Government Dr. Muhammad Yunus. During the meeting, the chief adviser urged all NGOs to work together to address the severe flood situation affecting 11 districts in the northeastern and southeastern regions of the country. CDF member institutions are fully committed to achieving that goal.