BRPD-1 Circular Letter No. 16: Policy Support for Restructuring the Business and Financial Condition of Affected Borrowers

Bangladesh Bank Head Office Motijheel, Dhaka-1000 Bangladesh. website: www.bb.org.bd Circular Letter No. 1 07 January 2026 Circular Letter No. 16 24 Rabi al-Awwal 1433 Chief General Manager/Head of Department/General Manager Chief Executive, Bangladesh Bank Dear Sir, Policy Support for Restructuring the Business and Financial Condition of Affected Borrowers: Circular Letter No. 07 of 2025 and Circular Letter No. 24 of 2025 With reference to Circular Letter No. 07 dated 16 January 2025 and Circular Letter No. 24 dated 24 February 2025, the following guidelines are issued for the implementation of the policy support for restructuring the business and financial condition of affected borrowers: 2. The following guidelines are issued to implement the policy support for restructuring the business and financial condition of affected borrowers, as approved by the Monetary Policy Committee: K) In accordance with Circular Letter No. 07/2025, banks are directed to complete the restructuring process for affected borrowers up to 30 January 2026. Provided that, if any bank has already implemented the restructuring policy under the approved guidelines for restructuring the business and financial condition of affected borrowers, the bank shall not be required to restructure the borrowers under this policy; L) Banks are directed to complete the restructuring process for Standard (STD-0, 1, 2, SMA) accounts up to 30 January 2026, and for Sub-Standard (SS, DF, B/L) accounts up to 31 March 2026; M) Under this circular, banks are required to complete the restructuring process within a maximum period of 03 (three) years. If restructuring is carried out under any special scheme or other exemption approved by the Monetary Policy Committee, the maximum period shall be extended to 03 (three) years from the date of restructuring. Provided that, banks shall not be allowed to restructure borrowers under this policy if they have already restructured them under any special scheme; N) In accordance with Circular Letter No. 26/2025, paragraph 3.4(M), the following clarification is issued: "Standard accounts under the Exit (SMA) scheme shall be classified as such and a general provision shall be made at the prescribed rate. Accordingly, banks shall not be allowed to make specific provisions for standard accounts under this scheme. Instead, they shall follow the prescribed methodology for making general provisions. Furthermore, since standard accounts are not classified as non-performing, banks shall not restructure any standard account under this scheme."; O) In accordance with Circular Letter No. 07/2025, paragraph 4(O), the maximum period has been extended; and P) Additional guidelines may be issued from time to time by the Monetary Policy Committee or its sub-committee. 3. This guideline is issued under Section 49(1)(P) of the Bangladesh Bank Order, 1991, and shall be binding on all. Authorized Signatory, (Md. Golam Rabbani Bhuiyan) Chief General Manager (Circular Letter-1) Fax: 9530252