Bangladesh Bank (BB) has again eased loan repayment terms for distressed borrowers, this time giving those with Tk1,000 crore or more in outstanding loans up to 15 years to repay under special rescheduling arrangements, including a grace period of up to two years.
Borrowers seeking policy support in this regard may submit new applications to their respective banks until 30 September.
The latest concession adds to a series of policy measures taken by the central bank to give struggling borrowers more time to repay overdue loans, even as bad loans remain a major burden on the banking sector.
Under a circular issued on Monday, a borrower or business group with loan balances of Tk1,000 crore or more may receive special rescheduling for up to 15 years, including a maximum two-year grace period, based on the banker-customer relationship.
For special restructuring, the same large borrowers may receive up to four additional years beyond the repayment period allowed under an earlier BB provision. The new relief, however, will not be limited to fresh applicants.
Borrowers who had already received policy support under the existing special rescheduling and restructuring framework may also receive the extended repayment terms. Any grace period they have already enjoyed will be counted towards the newly allowed period, with the remaining tenor extended where necessary.
For borrowers with outstanding loans below Tk1,000 crore, the repayment terms under the existing policy will continue to apply.
The facility will cover both classified and unclassified loans. For new applications, loans classified as STD-0, STD-1, STD-2 and SMA may receive special restructuring support, while SS, DF and BL loans may qualify for special rescheduling, under the applicable rules.
Banks must complete the processing of all applications under the latest circular by 31 December, after collecting the required down payments.
The latest move comes as BB continues to use restructuring and rescheduling as a key tool to deal with mounting distressed loans. The central bank has been extending repayment relief to eligible borrowers through successive policy measures since 2025.
