Regulatory Alerts2025-11-24
Added
BRPD Circular Letter No. 26: Policy support for restructuring the business and financial condition of the affected borrowers
The Bangladesh Bank replaces specific clauses in BRPD Circular No. 07/2025 to extend restructuring facilities for distressed borrowers. For classified loans as of 30 November 2025, banks may grant up to a 2-year grace period and a 10-year tenure based on the bank-client relationship. For unclassified term loans, an additional 2-year tenure is permitted beyond existing limits. Special exit facilities allow an extra 1-year period for down payments, require monthly or quarterly installments covering at least 20% of the total loan, mandate classification as Substandard with standard provisions, and prohibit new lending until full repayment.
Bangladesh Bank Head Office Motijheel, Dhaka-1000 Bangladesh. Ref No.: BRPD Circular Letter No. 26 Date: ------------------ 09 Agrahayan 1432 To Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh
Dear Sir,
Reference is invited to your attention regarding BRPD Circular No. 07 dated 16 September 2025, concerning policy support for restructuring the business and financial condition of affected borrowers.
- Now, to ensure proper implementation of the policy for providing policy support for restructuring the business and financial condition of affected borrowers, the following paragraphs of BRPD Circular No. 07/2025 are hereby replaced:
3.1. Special Restructuring Facility: a) For loans classified as (D, C, B/A) as of 30 November 2025, restructuring may be granted for a maximum tenure of 10 (ten) years, including a maximum grace period of 02 (two) years, based on the bank-client relationship and considering the loan amount;
3.3. Special Restructuring Facility: a) For unclassified term loans (including previously restructured loans), an additional maximum tenure of 02 (two) years may be determined for restructuring beyond the tenure specified in paragraph 6(1) of BRPD Circular No. 16/2022, based on the bank-client relationship and considering the loan amount;
3.4. Special Exit Facility: a) In providing the special exit facility, in addition to the tenure specified in BRPD Circular No. 13/2024, an additional period of 01 (one) year may be granted after taking the down payment at the rate specified in the said circular; b) Installments of loans benefiting from the special exit facility shall be collectible in monthly/quarterly installments according to the repayment schedule determined by the bank based on the bank-client relationship. However, the amount of installment collected per month shall not be less than 20% of the total loan; c) Loans benefiting from the special exit facility shall be shown as Substandard (D) and accordingly, standard general provision (General Provision) shall be maintained against the loan as per regulations. Furthermore, previously maintained specific provision (Specific Provision) against the account of the exit-facility-benefiting loan shall not be transferred to the bank's income account except for actual collection. However, a portion of it shall be transferred for the purpose of maintaining additional general provision. It is mentioned that no new loan facility shall be provided to the institution benefiting from this facility in favor of any existing loan facility other than the exit facility until the entire loan is repaid; d) If the borrower fails to pay the loan in 03 monthly/01 quarterly installments according to the repayment schedule determined by the bank, the relevant loan account shall be classified and provisioned as per regulations; e) In addition to the instructions specified in this circular regarding the provision of exit facilities, the instructions of BRPD Circular No. 13/2024 and its subsequent circulars shall be followed in other cases.
- These instructions are issued under the powers conferred by Section 49(1)(c) of the Bank Company Act, 1991, and shall come into force immediately.
Yours faithfully, (Md. Bazlur Rahman Sarkar) Director (BRPD) Phone: 953025