Bangladesh Bank extends tenure in loan rescheduling of large borrowers

Bangladesh Bank has increased the special facilities for the reconstruction of the business and financial activities of the affected borrower institutions. According to the new directive, if the outstanding of the loan of any institution or group is Tk 1,000 crore or more the loan can be rescheduled for a tenure of 15 years including a maximum two-year grace period.

A circular letter regarding this matter was issued from the Banking Regulation and Policy Department-1 of Bangladesh Bank on Monday (August 31). In the directive sent to the managing directors and chief executive officers of all scheduled banks of the country it has been said to implement the policy support for the affected borrowers properly.

According to the circular, application can be made to the concerned bank till September 30, 2026 to take special policy support under BRPD Circular No-07/2025. The borrowers who have taken policy support earlier under the same facility will also get the opportunity of applying newly.

In the new rule an institution or group having the outstanding of the loan of Tk 1,000 crore or more can be given a time of 15 years including a maximum two-year grace period in the case of special rescheduling. And in the case of special reconstruction the opportunity of increasing the tenure by a maximum additional four years has been kept with the time fixed under the existing rules.

However if the outstanding of the loan applied for by any institution or group is less than Tk 1,000 crore the tenure fixed earlier in BRPD Circular No-07/2025 will remain effective in the case of special rescheduling and reconstruction. The borrowers who have already received special policy support will also be able to come under the new facility. However the grace period that has already passed will be counted within the calculation of the new grace period.

It has been further said in the directive of Bangladesh Bank that unclassified loans can be brought under the special reconstruction facility till September 30. Alongside SS, DF and B/L classified loans can also be reconstructed under this facility subject to the fulfilment of the fixed conditions.

The applications that will be made under the new facility will have to be disposed of within December 31, 2026 after taking the necessary down payment. This directive of Bangladesh Bank issued under the power given in section 49(1)(ch) of the Bank Company Act, 1991 will be effective immediately.