BRPD-1 Circular Letter No. 23: Special Exit Policy for Recovery/Settlement of Loans

Managing Director/Chief Executive Officer All Scheduled Banks Operating in Bangladesh

Dear Sir,

Reference is drawn to your attention regarding BRPD Circular No. 13, dated: 08 July 2024 and BRPD Circular Letter No. 05, dated: 10 March 2025.

2. Increasing credit flow to the productive sector is of great importance for the creation of enterprises and sustainable economic development. Currently, the amount of non-performing loans in the country's banking sector has increased significantly, adversely affecting the quality of banks' assets, liquidity management, and the capacity to provide new loans. Therefore, it is essential to reduce non-performing loans in the banking sector. In this context, providing a one-time special exit facility to borrowers who have fallen into financial crisis due to various reasons but still have the capacity to operate the business and the sincerity to repay loans will, on one hand, reduce the amount of non-performing loans for banks, and on the other hand, increase the capacity of banks to provide new loans, which will play a positive role in production, investment, and enterprise creation.

3. In this context, loans classified as sub-standard or doubtful as of June 30, 2026, for the recovery of non-performing loans by banks, may be provided with a special exit subject to the approval of the bank's management board, based on the bank-customer relationship. The following instructions are to be followed in providing this facility:

a) Under the special exit facility, the borrower must repay the entire debt in a single lump sum;

b) In the case of waiver of all imposed and unimposed interest for borrowers under this facility, interest shall not be waived in the case of fund utilization recovery assurance mentioned in clause 2(e) of BRPD Circular No. 06, dated: 21 April 2022, and in the case of waiver of interest by excluding the income head of state-owned commercial and specialized banks mentioned in clause 2(g) of BRPD Circular Letter No. 18, dated: 24 May 2022; the imposed interest rate shall remain relaxed;

c) Loans classified as sub-standard or doubtful, which have been rescheduled between August 6, 2024, and June 30, 2026, are also eligible for the special exit facility under this circular;

d) In providing the special exit, priority must be given to short-term agricultural loans in the agriculture sector and cottage, micro, and small loans in the CMSME sector.

4. For informing borrowers about the special exit mentioned in this circular, banks must send letters and take other necessary measures.

5. The instructions of this circular will remain effective until December 31, 2026.

6. These instructions are issued under the powers conferred by Sections 45 and 49(1)(c) of the Bank Company Act, 1991.

Yours faithfully,

(Gazi Md. Mahfuzul Islam) Director (BRPD-1) Phone: 9530252

Bangladesh Bank Head Office Motijheel, Dhaka-1000 Bangladesh.

Copy to: Banking Regulation and Policy Department-1 29 June 2026

BRPD-1 Circular Letter No. 23, Date: ------------------- 15 Asharh 1433