Waiver for defaulters with over Tk 10 billion in loans, 15 years to repay

Bangladesh Bank (BB) has offered concessions to loan defaulters with outstanding loans of over Tk 10 billion. These borrowers will be allowed to reschedule or renew their loans for a period of up to 15 years, including a two-year grace period during which they will not have to make repayments.

BB issued a circular on the matter today, Monday. Defaulters with loans of less than Tk 10 billion have been offered fewer concessions.

Those interested in taking advantage of the facility will have to apply by September. The circular instructs the respective banks to dispose of the applications by December.

Borrowers who have previously benefited from policy support provided by the central bank may also submit fresh applications, the circular added.

Speaking about this, Bangladesh Bank officials told Prothom Alo that the facility has been reintroduced to reduce defaulted loans and help restart industrial operations. Production has been disrupted by the ongoing gas and electricity shortages, causing the loans of several major industrial groups to become classified as bad loans. The additional concessions for defaulters with more than Tk 10 billion in loans have primarily been introduced to support these businesses.

Loan defaulters were offered concessions earlier in 2025. A Bangladesh Bank circular issued on 16 September that year said borrowers would have to deposit at least 2 per cent of their existing outstanding defaulted loans in cash, based on the relationship between the bank and the borrower. If the loan was regularised, borrowers would be given 10 years to repay it, including a two-year grace period.

However, if a loan had previously been rescheduled three or more times, an additional 1 per cent deposit would have to be made. Bangladesh Bank instructed banks to reschedule loans after properly considering the extent of losses suffered by genuinely affected borrowers and the prospects of their businesses recovering.

The validity of that facility has already expired. The opportunity has now been offered again under a new arrangement.

Those who previously rescheduled their loans under special facilities will have to deduct the period already granted from the new repayment tenure.