The Bangladesh Bank has extended the deadline for rescheduling classified loans taken by borrowers whose businesses were adversely affected by factors beyond their control during the Sheikh Hasina administration.
Under the revised facility, borrowers will be able to restructure their loans for up to ten years by making a down payment of just 2%.
In a circular issued on Monday by the Banking Regulation and Policy Department, the central bank confirmed that the rescheduling deadline has been extended to 30th November, replacing the earlier cut-off of 30th June. The timeframe for special loan restructuring has also been extended to 31st December, instead of the previously set June deadline.
The Bangladesh Bank has further introduced significant reforms to the exit facility, altering longstanding rules governing the classification of loans.
Previously, even if a bank approved a four-year exit period, the borrower remained classified throughout the entire duration. A loan’s status would only improve after the full outstanding amount had been cleared, either in instalments or through a lump-sum payment.
The new framework marks a substantial shift. Once a borrower opts for the exit facility, their loan classification status will be immediately upgraded—mirroring the treatment after rescheduling—meaning they will no longer be listed as defaulters.
The circular noted that many borrowers had used the four-year exit window to delay repayments until the final stages. To prevent such delays and to strengthen financial discipline, the central bank has tightened repayment conditions.
Under the revised rules, borrowers must now repay dues in quarterly instalments, with annual repayments not falling below 20% of the outstanding amount. Failure to make payments during any three-month period will result in the borrower being reclassified as a defaulter.
Although borrowers under the exit facility will continue to be barred from receiving new funded loans, they will remain eligible for non-funded facilities, such as Letters of Credit (LCs).
