Regulatory Alerts2026-05-07
BRPD-1 Circular Letter No. 16: Policy Support for Restructuring the Business and Financial Condition of Affected Borrowers
Bangladesh Bank issued Circular Letter No. 16 to implement policy support for restructuring the business and financial conditions of affected borrowers, building on previous directives from January and February 2025. The circular mandates that banks complete restructuring for Standard (STD-0, 1, 2, SMA) accounts by 30 January 2026 and Sub-Standard (SS, DF, B/L) accounts by 31 March 2026, with a maximum restructuring period of three years extendable only under approved special schemes. It further clarifies that standard accounts under the Exit (SMA) scheme require only general provisions, prohibits specific provisions for such accounts, and explicitly forbids the restructuring of standard accounts, while reserving the right to issue additional guidelines via the Monetary Policy Committee.