Bangladesh Bank Circular No. 10: Loan Facility Against Government Bond (Treasury Bond)

Bangladesh Bank (Central Bank of Bangladesh) Head Office, Bangabandhu Avenue, Dhaka-1000, Bangladesh. Website: www.bb.org.bd

Bangladesh Bank Circular No. 10 Important Circular/Notice for Public Information Bangladesh Bank Circular.

Dear Sir/Madam,

Regarding Loan Facility Against Government Bond (Treasury Bond) - FY Proposal.

With reference to Bangladesh Bank Circular No. 04, dated: 26 July 2021, regarding FY/Non-FY Proposal and Guidelines, the following instructions are hereby issued:

2. In accordance with Section 3.8 of the Banking Companies Act, 1991, the Bangladesh Bank has issued necessary guidelines regarding the lending of Government Bonds (Treasury Bonds). Therefore, the following instructions are hereby issued to the lending institutions regarding the loan facility against Government Bonds (Treasury Bonds) under the FY scheme:

K) Under the guidelines of the Financial Market Infrastructure (FMI) issued by the Bangladesh Bank, lending institutions must ensure that the Government Bonds (Treasury Bonds) pledged as collateral for the loan facility under the FY scheme are held in the name of the lending institution; L) The loan facility under the FY scheme shall be provided up to 75% of the Face Value of the Bond. However, no adjustment shall be made against the Face Value of the Bond for any reason; M) The amount of the loan shall not be adjusted against the amount of the Bond under any circumstances; and N) No loan facility shall be provided under the FY scheme against the Bond in the form of a receipt/voucher.

3. This instruction is issued under Section 41(2)(N) of the Bangladesh Bank Order, 2023.

Authorized Signature,

(Nurunnahar Jahan Lopa) Director (Bangladesh Bank) Tel: 9530178| 16 June 2026

Reference: 03 Muharram 1433 Official Publication and Contact Information