Bangladesh Bank has allowed shipbuilding industry loans that were classified as of 31 December 2025 to be rescheduled for a maximum tenure of 10 years under a special facility.
Under the new arrangement, the total down payment has been fixed at 3 per cent while the first 2 years will be treated as a grace period. The directive came into effect on 20 January 2026.
According to a circular issued by the Banking Regulation and Policy Department of Bangladesh Bank, the facility will apply to export-oriented and local shipbuilding companies that have been genuinely affected by factors beyond their control.
The circular said each application will be reviewed by the concerned bank based on the banker-customer relationship, with decisions taken after assessing the merits of individual cases.
Under the policy, suspended interest or profit and uncharged interest related to classified loans or investments in the shipbuilding sector must be transferred to a separate blocked account. The remaining principal can then be rescheduled for up to 10 years subject to a 3 per cent down payment. Of this amount, 1.5 per cent must be paid at the time of applying for rescheduling while the remaining 1.5 per cent must be paid within 6 months after the facility becomes effective.
During the grace period, borrowers will have to pay interest on the loan on a monthly or quarterly basis. The interest kept in the blocked account will be repayable without interest in separate monthly or quarterly instalments after the grace period ends.
Loans that were earlier rescheduled under BRPD Circular No-12 of 2023 will also be eligible for a special restructuring facility. In such cases, a maximum of 2 additional years can be added to the existing loan tenure subject to a 2 per cent down payment. Of this amount, 1 per cent must be paid with the restructuring application and the remaining 1 per cent within 6 months after the facility takes effect.
Bangladesh Bank said no compromise amount will be required against rescheduled or restructured loans when shipbuilding companies seek fresh credit facilities to keep their business and export operations running.
The circular further said instalments of specially rescheduled or restructured loans must be paid on a monthly or quarterly basis. If a borrower fails to pay instalments, the loan will be classified in line with existing rules. Banks will also have to maintain provisions applicable to unclassified loan standards and obtain approval from their boards of directors for implementing the instructions.
The central bank made it clear that loans created through fraud and loans of wilful defaulters will not be eligible for the special facility.
It also said banks will be able to cancel the rescheduling or restructuring benefit and take necessary legal action for loan recovery if borrowers fail to pay the required down payment or miss six monthly or two quarterly instalments after the facility becomes effective. Such loans will not be eligible for any future rescheduling or restructuring.
According to the circular, borrowers must submit applications for rescheduling or restructuring to their respective banks with the initial down payment in cash by 30 June 2026. Banks will be required to dispose of applications within 60 days of receipt.
Before granting the special rescheduling facility, banks must conduct special inspections to verify whether shipbuilding companies were genuinely affected due to factors beyond their control. If losses are confirmed, banks may, at their discretion, treat the loans as eligible for qualitative classification as of 31 December 2025.
Shariah-based banks have been instructed to implement the same measures for their investments in compliance with Shariah principles.
Bangladesh Bank said the directive was issued under the powers conferred by Section 45 of the Bank Company Act, 1991 and has taken effect immediately.
