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, Special Exit Policy for Recovery/Settlement of Non-Performing Loans Your attention is drawn to BRPD Circular No. 13, dated: 08 July 2024 and BRPD Circular Letter No. 05, dated: 10 March 2025 on the above subject. 2| Increasing loan flow to productive sectors is extremely important for creating employment and achieving sustainable economic growth. Currently, the significant increase in the amount of non-performing loans (NPLs) in the country's banking sector is adversely affecting the asset quality, liquidity management, and new loan disbursement capacity of banks, making NPL reduction essential for the banking sector. In this context, providing a one-time special exit facility to borrowers who, despite facing financial distress for various reasons, possess the capacity to operate their businesses and a genuine intention to repay their loans, will not only reduce the amount of NPLs for banks but also increase their capacity to disburse new loans, which will play a positive role in production, investment, and employment generation. 3| In the described context, for the purpose of recovering non-performing loans of banks, special exit facilities may be provided to loans classified as bad and loss on the base date of 30 June 2026, subject to the approval of the bank's Board of Directors and based on the banker-customer relationship. The following instructions shall be followed for providing this facility: a) Under the special exit facility, the borrower must repay all liabilities in a single installment; b) Under this facility, for the waiver of all accrued and unaccrued interest of the borrowers, the condition related to ensuring the recovery of fund costs as described in BRPD Circular No. 06, dated: 21 April 2022, in section 2(O), and the condition that interest cannot be waived by debiting the income account of state-owned commercial and specialized banks as described in BRPD Circular Letter No. 18, dated: 24 May 2022, in section 2(M), shall be relaxed; c) Loans classified as bad or loss, which have been rescheduled during the period from 6 August 2024 to 30 June 2026, shall also be eligible for the special exit facility under this circular; d) In providing the special exit facility, priority must be given to short-term agricultural loans in the agricultural sector and cottage, micro, and small loans in the CMSME sector. 4| Banks must take necessary measures, including sending letters, to inform borrowers about the special exit facility described in this circular. 5| The instructions of this circular shall remain effective until 31 December 2026. 6| These instructions have been issued under the powers conferred by Sections 45 and 49(1)(P) of the Bank-Company Act, 1991. Yours faithfully, (Ghazi Md. Mahfuzul Islam) Director (BRPD-1) Phone: 9530252 Bangladesh Bank Head Office Motijheel, Dhaka-1000 Bangladesh website: www.bb.org.bd Banking Regulation and Policy Department-1 29 June 2026 BRPD-1 Circular Letter No. 23 Date: ------------------- 15 Ashar 1433