In an effort to prevent a systemic collapse of the nation’s maritime engineering industry, Bangladesh Bank has announced a highly concessional debt-restructuring package. On Tuesday, the central bank issued a circular allowing export-oriented and local shipbuilders to regularise their defaulted loans with a down payment of just 3%. This special facility aims to provide breathing room to a sector currently suffocated by a global liquidity crunch and fractured supply chains.
Mitigating Macroeconomic Turbulence
The regulator’s decision is a direct response to “uncontrollable external factors.” The official notification highlights that the cash flow of domestic shipyards has been ravaged by the ongoing global economic slowdown, geopolitical volatility, and military instability in Europe. These factors have led to delayed vessel deliveries and cancelled orders, leaving many of the country’s premier shipbuilders unable to service their debt.
Executive Summary: Shipbuilding Loan Concessions 2026
| Feature | Terms and Conditions |
| Eligibility Date | Loans classified as defaulted by 31 Dec 2025 |
| Down Payment | 3% (1.5% upfront; 1.5% within 6 months) |
| Max Repayment Term | 10 years |
| Grace Period | 2 years (Principal holiday) |
| Application Deadline | 30 June 2026 |
| Exclusion Criteria | Wilful defaulters and fraudulent accounts |
Strategic Restructuring and Grace Periods
The new policy introduces a structured pathway for debt recovery. Upon approval, the principal amount is rescheduled for a maximum of ten years. A critical component of this relief is the two-year grace period. During this window, entrepreneurs are exempt from paying the principal, though they must remain current on interest payments on a monthly or quarterly basis.
All suspended and unapplied interest will be moved to a non-interest-bearing “blocked account.” Once the two-year grace period expires, this blocked interest will be paid off in separate instalments, allowing the business to focus its immediate cash flow on operational recovery.
Transparency and Accountability Guardrails
While the terms are generous, Bangladesh Bank has built in safeguards to ensure the facility is not exploited.
Verification: Commercial banks must conduct “special inspections” to prove the borrower was genuinely impacted by external market forces.
Wilful Defaulters: Those who have intentionally avoided payment or those involved in financial fraud are strictly barred from this scheme.
One-Time Offer: Should a borrower fail to meet the new, eased instalment plan, the loan will immediately revert to “defaulted” status, and no further restructuring will ever be permitted for that account.
Banks are required to process and settle all applications within 60 days of receipt. By removing the need for a “compromise amount” for future credit, the regulator is hoping to kickstart new production cycles in the yards.