Raw jute exports remain a vital pillar of Bangladesh’s foreign currency earnings, supporting rural livelihoods and contributing to the country’s trade balance. In recognition of mounting financial pressures faced by exporters in this sector, the central bank, Bangladesh Bank, has extended the deadline for applications to reschedule defaulted loans.
Under a circular issued on Sunday by the Banking Regulation and Policy Department, chief executives of all commercial banks have been instructed to implement the revised policy without delay. According to the new decision, exporters of raw jute may apply for loan rescheduling facilities until 30 June. Previously, the deadline for availing this opportunity had been set for 31 December 2025.
To qualify, borrowers with outstanding loans as of 31 December 2024 must deposit 2 per cent of the overdue balance as a one-off payment at the time of application. The extension has been granted in light of a series of operational and market challenges that prevented many exporters from applying within the original timeframe. These challenges include shipping complications, falling international prices, volatility in raw material costs, and delays in receiving export proceeds.
Bangladesh is one of the world’s leading producers of jute, a natural fibre increasingly valued in global markets for its environmentally sustainable qualities. As international demand shifts towards biodegradable and eco-friendly alternatives, jute has regained strategic importance. The raw jute export sector plays a crucial role in sustaining rural incomes, benefiting thousands of farmers, traders and labourers across the country. A prolonged liquidity crisis in this segment could therefore have broader macroeconomic repercussions.
The principal features of the revised policy are summarised below:
| বিষয় | Previous Deadline | Extended Deadline | Down Payment Requirement |
|---|---|---|---|
| Application for Rescheduling of Defaulted Loans | 31 December 2025 | 30 June | 2% of outstanding balance |
The central bank stated that the decision has been taken in the public interest under Section 45 of the Bank Company Act, 1991. The directive is effective immediately, and banks have been urged to take necessary measures to facilitate eligible exporters.
Economists observe that the rescheduling facility is likely to provide meaningful relief to exporters struggling with temporary cash-flow constraints. By regularising their loans, businesses may regain access to working capital and stabilise their operations. At the same time, the initiative could ease the burden of non-performing loans within the banking sector.
In the broader context, the measure is expected to support export growth and strengthen foreign exchange reserves. As Bangladesh continues its efforts to consolidate macroeconomic stability, targeted interventions of this nature may prove instrumental in sustaining momentum in key export-oriented industries.