Bangladesh Bank has granted a three-month extension to raw jute exporters seeking to reschedule their classified loans, offering much-needed breathing space to a sector heavily strained by trade bottlenecks and liquidity constraints.
Under the updated directive, exporters now have until 30 September 2026 to submit their loan rescheduling applications to their respective commercial banks. To qualify, borrowers must deposit a 2 per cent down payment calculated against their outstanding classified debt balance as of 31 December 2025.
The Banking Regulations and Policy Department-1 of the central bank officially published the instruction on Thursday, 24 September 2026, invoking powers under Section 45 of the Bank Company Act, 1991. The order takes effect immediately.
The policy applies specifically to classified loans categorized as adverse, including sub-standard (SS), doubtful (DF), and bad or loss (BL) accounts. Previously, the central bank had established a submission deadline of 30 June 2026, following an earlier relief measure introduced via a circular issued on 22 February 2026. However, industry representatives subsequently notified the regulator that a significant number of exporters were unable to secure the necessary funds for the down payment or fulfil administrative requirements in time due to severe disruptions in foreign trade, payment collection delays, and volatile export revenues.
| Parameter / Feature | Details / Specifics |
| Regulatory Authority | Bangladesh Bank |
| Issuing Department | Banking Regulations and Policy Department-1 |
| Statutory Power | Section 45, Bank Company Act, 1991 |
| Target Sector | Raw Jute Exporters |
| Cut-off Date for Debt Calculation | 31 December 2025 |
| Mandatory Down Payment | 2 per cent of debt balance |
| Previous Application Deadline | 30 June 2026 |
| Extended Application Deadline | 30 September 2026 |
| Final Bank Settlement Deadline | 31 December 2026 |
| Eligible Loan Statuses | Classified Loans (SS, DF, BL) |
| Sub-standard Classification | SS |
| Doubtful Classification | DF |
| Bad / Loss Classification | BL |
| Application Destination | Respective Commercial Banks |
The central bank has stipulated that participating commercial banks must thoroughly verify all received applications and conclude the official processing and settlement of every account by 31 December 2026. All other terms, operational conditions, and regulatory provisions outlined in preceding circulars remain fully intact.
Raw jute has long served as a key traditional export for Bangladesh, maintaining an essential role in driving rural economic activity and earning foreign exchange. In recent years, however, domestic processors and exporters have contended with erratic raw material pricing, heightened competition from synthetic alternatives abroad, and fluctuating orders from major international markets. Regulators anticipate this final extension will stabilize balance sheets across the sector, enabling businesses to regularize their bank accounts and rebuild operational capacity.
