Regulatory Alerts2025-03-10
Added
BRPD Circular Letter No. 05: Exit Policy for Recovery/Settlement of Loans
The Bangladesh Bank replaces specific clauses of BRPD Circular No. 13 to mandate a minimum 5% cash down payment for exit facility applications, require bank decisions within 60 days, and restrict approval authority based on loan principal amounts. The directive explicitly prohibits the rescheduling or restructuring of any loan that has received exit facility benefits and authorizes legal recovery measures if the borrower defaults after receiving such benefits. These instructions are issued under Section 45 of the Companies Act, 1991, and take immediate effect for all scheduled banks operating in Bangladesh.
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