Bangladesh Bank has eased down payment requirements and extended the implementation period under its policy support scheme to help distressed borrowers revive their businesses. In a circular issued on Sunday, the central bank said the decision responds to requests from banks and stakeholders seeking greater flexibility in implementing the previous policy.
Senior bankers welcomed the move, saying it will provide the struggling industrial sector an opportunity to recover. However, they cautioned that wilful defaulters could attempt to exploit the relaxed rules.
Under the revised guidelines, eligible borrowers can now pay down payments in installments. At the time of policy support approval, 50 percent of the required down payment must be paid immediately, with the remaining 50 percent due within six months.
Additionally, if a policy support approval cannot be implemented for legitimate reasons, banks may extend the predetermined period by up to three months. Bangladesh Bank has instructed banks to make decisions in line with existing policies, banker-customer relations, and applicable interest guidelines.
In January last year, the central bank formed a five-member committee, led by the Executive Director of the Offsite Supervision Department, to provide necessary support to corporate borrowers who defaulted due to circumstances beyond their control. The committee operates through tripartite meetings with the borrower institution or group and the financing bank, which concluded on September 30, 2025.
Earlier, on September 16, Bangladesh Bank issued a comprehensive special loan rescheduling policy aimed at sustaining economic growth and assisting borrowers affected by uncontrollable situations. According to the central bank, about 300 companies, including major defaulting industrial groups, applied for loan rescheduling or restructuring facilities worth approximately Tk 2 lakh crore in the first nine months of last year.
Syed Mahbubur Rahman, Managing Director and CEO of Mutual Trust Bank, said the flexibility offered by Bangladesh Bank can help struggling industrial enterprises recover during these challenging times, noting that the economy is under pressure. Anis A Khan, former chairman of the Association of Bankers Bangladesh, added that the policy provides a vital opportunity for businesses to restore production and services under the newly formed government, emphasizing the need to use this time to rebuild damaged infrastructure.
Bd-pratidin English/ Jisan
