Dhaka: Bangladesh Bank has made policy support for financially distressed borrowing institutions simpler and more effective, aiming to facilitate economic recovery. The central bank announced new guidelines on Sunday, 22 February, through an official notification.
The updated directive allows borrowers greater flexibility when opting for loan rescheduling or exit facilities. Specifically, financial institutions can now permit clients to make only 50 per cent of the required down payment initially, submitting their application after this partial payment. The remaining 50 per cent must be settled within six months from the start of the extended repayment period.
In addition, institutions whose policy support had already been approved but could not be implemented due to reasonable constraints are now eligible for a three-month extension beyond the originally stipulated period.
The authority to decide on interest waivers has also been delegated to the boards of the respective lending institutions. These decisions will be made in accordance with existing policies and based on the established banker–client relationship.
Banking experts have welcomed the move, viewing it as a significant step to revitalise the industrial and commercial sectors. Particularly, enterprises in the agriculture, manufacturing, transportation, and retail sectors are expected to benefit from this support, enabling them to resume operations and stabilise their financial position.
The main advantages of the new policy are summarised in the following table:
| Type of Benefit | Details | Timeframe / Condition |
|---|---|---|
| Partial Down Payment | Borrowers can apply after paying 50% of the down payment | Remaining 50% to be paid within 6 months |
| Extension for Policy Implementation | Extra 3 months allowed if implementation is delayed for valid reasons | Applies to previously approved support |
| Interest Waiver Decision | Lending institution’s board decides based on policy | Decisions under existing banker–client framework |
Expert opinion:
“This new policy opens a pathway for economic revitalisation of distressed institutions. It offers fresh opportunities for small and medium-sized enterprises while strengthening the relationship between clients and banks,” said banking expert Dr Mohammad Anisur Rahman.
The decision by Bangladesh Bank is being hailed as a landmark initiative for economic recovery, providing much-needed relief to industries and commercial enterprises affected by financial setbacks. Analysts suggest that with this support, a broad spectrum of sectors can regain momentum, contributing to overall economic stability in the country.