Published: 01:06 AM, 19 June 2026
36 banks decide to reschedule City Group's loans
In total 36 scheduled banks have reached a decision to reschedule City Group's loans amounting to 26 thousand 600 crore taka. This bid aims at bailing out City Group from acute financial crisis. City Group is one of the largest business conglomerates in Bangladesh.
Top bankers had a meeting at Pan Pacific Hotel Sonargaon in Dhaka city on Thursday to discuss this matter. Relevant sources have informed that City Group's defaulted loans have not been yet classified. City Group has been running different industries for last five decades and around 25 thousand employees work for these industries. Representatives of the above banks will be joining City Group's board of directors to ensure transparency in the financial operations of City Group. This initiative follows the "Waterfall Mechanism" which is a global model for restructuring loans.
Under this scheme, all these 36 banks will run an escrow account for City Group. All cash transactions will be conducted through this bank account. Reportedly, Chairman of Association of Bankers Bangladesh (ABB) and City Bank Managing Director Mashrur Arefin proposed this endeavour while Bangladesh Bank Governor Mostaqur Rahman nodded to this step.An independent committee will be set up for monitoring the business group's activities and external experts will also be involved for this purpose.
City Group's Managing Director Mohammad Hasan said "Devaluation of Taka is mainly responsible for our crisis. During the past years we did not receive sufficient support from the banking system which led to severe losses and damage to City Group".
