City Group’s liability, amounting to nearly Tk24,000 crore, is now spread across 29 banks, with the Bangladesh Bank coordinating efforts to restructure the debt, Governor Mostaqur Rahman said on Tuesday.
Speaking during the question-and-answer session after the announcement of the monetary policy for the first half of the 2026-27 fiscal year, the governor said the central bank took initiative as soon as the City Group issue came to their attention.
“After the matter came to us, we first asked the managing directors of three top banks to sit together to analyse the problem. Subsequently, they held meetings with 29 banks and are trying to formulate a solution,” the governor said.
He added that he had spoken with officials of the two lead banks on Tuesday, and they are moving towards finalising a solution. If implementation can begin within the next three months, City Group is expected to emerge from the crisis.
The governor said it would not be correct to blame only the exchange rate for this crisis. “There is a liability position of around Tk22,000 to Tk23,000 crore, approximately Tk24,000 crore. They have found a solution, and we will support that process,” he said.
The governor also informed that the country’s foreign exchange reserves currently exceed $37 billion. With the Middle East situation stabilising somewhat compared to before, the Bangladesh Bank does not foresee any major exchange rate risk in the short term.
However, he cautioned that the situation could change if new global instability arises in the energy market.
