BB extends loan restructuring facility for raw jute exporters

Bangladesh Bank (BB) has extended the deadline for raw jute exporters to apply for loan restructuring facilities, allowing distressed exporters additional time to regularise their classified loans.

Under a new directive issued to managing directors and chief executive officers of all scheduled banks, the facility will cover loans classified as Sub-standard (SS), Doubtful (DF) and Bad/Loss (B/L) as of September 30, 2026.

Exporters seeking the facility will have to submit applications to their respective banks by September 30, 2026, along with a 2 percent down payment of the total outstanding loan amount.

The central bank has also extended the deadline for banks to settle and dispose of applications received under the facility until December 31, 2026.

The latest decision effectively gives raw jute exporters additional time to address financial difficulties and regularise their accounts amid sector-specific operational and financial complexities.

The directive was issued under Section 45 of the Bank Company Act, 1991, with reference to coordination with the Financial Institutions Division of the Ministry of Finance.

The central bank said the provisions of BRPD Circular No. 21 issued on October 13, 2021; BRPD Circular No. 27 issued on July 7, 2022; and BRPD Circular No. 06 issued on February 22, 2023 will continue to apply, with all other terms and conditions remaining unchanged.