BRPD Circular No. 03: Relaxation of Loan Re-scheduling Policy

website: www.bangladesh-bank.org www.bangladeshbank.org.bd

Bangladesh Bank Banking Regulation and Policy Department Head Office Dhaka.

April 19, 2009 BRPD Circular No.- 03 Date: ------------------- Baishakh 06, 1416

Managing Director/Chief Executive All Scheduled Banks operating in Bangladesh

Dear Sir,

Context of relaxation of loan rescheduling policy in the export-oriented industrial sector to cope with the prevailing global economic situation.

Due to the global economic crisis, there is a negative impact on international trade, which is adversely affecting the country's business, commerce, and economic activities. Consequently, there is a growing concern that loans granted to the export-oriented industrial sector, particularly in frozen food, leather and leather-based products, jute and jute-based products, textiles (including spinning), and ready-made garments, are increasingly being classified and turning into non-performing loans.

In this situation, due to the global recession, loans of the above-mentioned sectors for distressed customers may be rescheduled by banks based on the bank-customer relationship without mandatory down payments until September 30, 2009. It is noteworthy that other instructions mentioned in BRPD Circulars No. 01, 02, and 03 dated January 13, 2003, February 14, 2006, and March 19, 2006, respectively, regarding loan rescheduling will remain unchanged.

This directive will come into effect immediately.

Please acknowledge receipt.

Yours faithfully, Signed

(Abu Hena Mohiuddin Raji Hasan) Deputy Governor Phone: 7117825