Bangladesh Bank offers debt concessions to major defaulters

Bangladesh Bank has issued a new directive providing special concessions to major loan defaulters with outstanding debts exceeding 1,000 crore BDT. Under this policy, eligible clients can reschedule or renew their loans for a term of up to 15 years, which includes a two-year grace period for repayments. Interested parties must apply by September, with banks instructed to settle applications by December.

Central bank officials stated the measure aims to reduce defaulted loans and help restart industrial operations currently hampered by gas and electricity shortages. This follows a previous 2025 policy that offered a 10-year repayment period with a two-year grace period upon a 2% cash deposit.

As of the end of March, total defaulted loans in the country's banking sector reached 588,704 crore BDT. Data shows that while loan disbursements increased by approximately 4,000 crore BDT over a three-month period, defaulted loans rose by 31,487 crore BDT during the same timeframe. Currently, 32.26% of the total 18.24 lakh crore BDT distributed by 61 scheduled banks is classified as defaulted.