Regulatory Alerts2025-12-03
Added
BRPD Circular No. 11: Policy on Partial Write-off of Loans
The document amends previous circulars to authorize scheduled banks in Bangladesh to perform partial write-offs on classified and doubtful loans where recovery prospects are weak, provided the portion covered by eligible collateral is treated as recoverable. Banks must write off the remaining unsecured portion, apply interest write-offs before principal, and separately account for unaccrued interest. The circular explicitly repeals the prior prohibition on partial write-offs and mandates that recovered amounts be adjusted against the written-off balance, with potential restructuring or exit facilities offered for the adjusted portion.
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