Dhaka – Bangladesh Bank has made policy support for financially distressed borrowers simpler and more effective, aiming to revitalise industries, businesses, and agricultural enterprises affected by economic disruptions. This was announced on Sunday (22 February) through an official statement issued by the central bank.
The new directive primarily seeks to facilitate the smooth recovery of institutions in key sectors such as agriculture, manufacturing, transportation, and retail. Under the updated guidelines, borrowers seeking loan rescheduling or exit facilities can now benefit from partial down payment arrangements. Specifically, lending institutions may allow clients to apply after paying only 50 per cent of the required down payment, with the remaining 50 per cent payable within six months of the stipulated deadline.
In addition, for institutions that have already received policy support but could not implement it for legitimate reasons, financing institutions are authorised to extend the pre-determined implementation period by an additional three months.
The authority to decide on interest waivers has also been delegated to the boards of the respective banks, which will make decisions based on existing policies and the established banker–client relationship. Banking sector experts suggest that these measures will open new avenues for distressed enterprises to regain operational stability.
Dr. Mohammad Anisur Rahman, a banking expert, commented, “This policy offers a pathway to economic recovery for distressed institutions. It will create opportunities for small and medium-sized enterprises while strengthening the relationship between clients and banks.”
The central bank’s initiative is being hailed as a landmark move for economic revival. By easing repayment conditions and facilitating smoother credit arrangements, the policy is expected to provide much-needed relief to affected businesses, ultimately contributing to long-term stability and growth in the national economy.
The table below summarises the main benefits of the new policy:
| Type of Benefit | Details | Timeframe / Condition |
|---|---|---|
| Partial Down Payment | Borrowers may apply after paying 50% of the down payment | Remaining 50% to be paid within 6 months |
| Extension of Implementation Period | Additional 3 months for institutions unable to implement on time | Applicable if implementation delayed for valid reasons |
| Interest Waiver Decisions | Bank board to decide based on policy and banker–client relationship | Within existing policy framework |
Bangladesh Bank’s move is expected to not only rejuvenate distressed sectors but also strengthen long-term bank–client relations, reinforcing the resilience of the country’s financial system.