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

Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh. Ref No.: DFIM/SCL/10 DFIM Circular No.-10 To, Managing Director / Chief Executive Officer All Finance Companies Operating in Bangladesh. Dear Sir, Regarding the provision of loan facilities against Government Bonds (Treasury Bonds). Reference is invited to DFIM Circular No.-04, dated July 26, 2021, issued in the context of loan/lease classification and institutional preservation.

2. In accordance with paragraph 3.8 of the aforementioned circular, licensed Government Bonds in Finance Companies are included as eligible collateral. Now, in the context of distributing loans against Treasury Bonds as collateral, Finance Companies shall follow the following instructions:

a) Before providing short/long-term loan facilities to customers against Treasury Bonds, the Finance Company must register the customer's Treasury Bonds in the Loan Registry System (LRS); b) Loan facilities may be provided up to a maximum of 75% of the face value of the Bond. However, due to the accrual of interest, the status of the loan must never exceed the face value of the Bond; c) The loan term must not exceed the bond term in any way; and d) No loan shall be provided by the Finance Company for the purpose of purchasing Bonds.

3. This instruction is issued under the power granted in Section 41(2)(d) of the Finance Companies Act, 2023.

Yours faithfully,

(Hasan Tareq Khan) Director (DFIM) Phone: 9530178. Date: April 16, 2026 Date: 03 Bangabda 1433 Additional Department of Institutions and Markets