Borrowers whose outstanding loan balance is Tk 1,000 crore or more will now be able to repay their loans over 15 years, including a two-year grace period, instead of 10 years.
The special loan rescheduling facility was announced yesterday as part of the central bank’s 18-month roadmap to reduce defaulted loans.
For borrowers with outstanding loans of less than Tk 1,000 crore, the repayment tenure will be 10 years, including a two-year grace period.
In the case of special restructuring, banks may allow an additional tenure of up to four years beyond the previous tenure.
The facility, which can be availed until December 31, can be extended based on the bank-customer relationship, said the Bangladesh Bank circular.
Bangladesh’s exports, like those of other countries, are facing temporary headwinds due to the ongoing conflict in the Middle East, The Daily Star has learnt from central bank officials involved with the decision.
Fuel shortages have disrupted production at export-oriented industries, weakening borrowers’ repayment capacity. At the same time, market-based interest rates have significantly increased borrowing costs amid a business slowdown, they added.
The special loan rescheduling and restructuring facility will also be available to borrowers who have previously received policy support under the 2025 circular or from the selection committee formed to provide restructuring support.
However, any grace period already enjoyed by such borrowers will be counted as part of the grace period allowed under the latest instruction. Their repayment tenure may then be extended accordingly.
For new applications submitted by September 30, special restructuring facilities can be provided for unclassified loans, including standard loans and special mention accounts.
Special rescheduling facilities can be provided for adversely classified loans, including substandard, doubtful and bad/loss loans.
The latest instruction has been issued to ensure proper implementation of the BB policy support guidelines for restructuring the business and financial arrangements of affected borrower enterprises, the circular said.
All other provisions of the earlier circulars and subsequent instructions issued in continuation of them will remain unchanged.
There is currently a slowdown in business and investment, said Fahmida Khatun, distinguished fellow at the Centre for Policy Dialogue.
“Many businesses have fallen into difficulties unintentionally and this facility will provide them with some breathing space. As a result, they will get an opportunity to recover.”
However, it must be ensured that wilful loan defaulters, who have made no meaningful contribution to the economy, do not benefit from this facility, said Fahmida, also a director of BB.
