Published: 11:41 PM, 31 August 2026
BB extends loan restructuring facilities for affected borrowers
Bangladesh Bank (BB) on Monday extended the deadline for submitting applications for policy support aimed at restructuring the business and financial operations of affected loan-taking institutions until September 30, 2026.
The central bank issued the directive to ensure proper implementation of its policy support for distressed borrowers and facilitate the restructuring of their businesses and financial arrangements.
According to the directive, borrowers seeking policy support under BB Circular No. 07 of 2025 will be able to submit fresh applications to their respective banks until September 30.
Borrowers who have already received policy support from the selection committee formed for business and financial restructuring will also be allowed to submit fresh applications under the circular.
For borrowers, either individual entities or groups, whose loan outstanding in the accounts applied for special rescheduling and restructuring is Taka 1,000 crore or more, banks may reschedule the loans for a maximum period of 15 years, including a maximum grace period of two years, based on the banker-customer relationship.
In cases of special restructuring, banks may allow an additional maximum period of four years beyond the tenure specified under paragraph 6(1) of BB Circular No. 16 of 2022.
For borrowers with loan outstanding of less than Taka 1,000 crore, the periods specified under BB Circular No. 07 of 2025 will remain applicable for special rescheduling and restructuring.
The central bank also said borrowers who had previously received policy support under BB Circular No. 07 of 2025 or through the selection committee would be eligible for the facilities outlined in the latest directive.
Additional time may be granted where necessary by considering the period already elapsed in the grace period as part of the grace period stipulated in the circular.
For fresh applications submitted by September 30, 2026, unclassified loans (STD-0, STD-1, STD-2 and SMA) may receive restructuring facilities, while classified loans (SS, DF and B/L) may receive special rescheduling facilities in line with the relevant circulars.
Banks have been instructed to settle all applications under the directive after collecting the required down payment by December 31, 2026.
The latest directive, issued under the powers vested in Bangladesh Bank by Section 49(1)(Cha) of the Bank Company Act, 1991, will take effect immediately.
