BB extends deadline for policy support applications to June 30

Bangladesh Bank (BB) has extended the deadline for submitting applications for policy support until June 30, 2026, allowing distressed borrowers more time to seek restructuring support.

The previous deadline was the end of December last year.

The central bank issued a circular in this regard on Thursday, saying that banks may provide special restructuring facilities for unclassified loans until the new deadline.

Loans classified as substandard, doubtful, and bad/loss as of March 31, 2026, will also be eligible for special rescheduling benefits, it added.

However, borrowers who have already received policy support under the earlier circular or through the restructuring selection committee will not be eligible for reconsideration.

The central bank issued the fresh instructions to reinforce the implementation of earlier policy support guidelines.

BB also instructed banks to dispose of applications within three months of receipt. Applications will become effective only after the encashment of down payments made in favour of banks.

The directive came into immediate effect under Section 49(1)(d) of the Bank Company Act, 1991.
In January last year, the central bank formed a five-member committee to provide necessary policy support for restructuring corporate borrowers that had defaulted on loans due to factors beyond their control.

In September last year, the BB also issued a unified special loan rescheduling policy to maintain economic growth and support borrowers who had defaulted due to circumstances beyond their control.
Under the policy support, distressed businesses will be able to get up to 15 years for repayment, with down payments as low as 1 percent to 2 percent and grace periods of up to three years.