In a move to support distressed borrowers, Bangladesh Bank (BB) has extended the deadline for submitting applications for policy support aimed at restructuring the business and financial operations of affected loan-taking institutions. The new deadline is set for September 30, 2026. This extension is part of BB's ongoing efforts to ensure the proper implementation of its policy support for borrowers facing financial difficulties.
Policy Support and Eligibility
The central bank issued a directive to ensure that borrowers can submit fresh applications under BB Circular No. 07 of 2025. This circular provides guidelines for the restructuring of business and financial arrangements for distressed borrowers. Borrowers who have already received policy support from the selection committee formed for business and financial restructuring are also allowed to submit fresh applications under this circular.
For borrowers with a loan outstanding of Taka 1,000 crore or more, banks may reschedule the loans for a maximum period of 15 years, including a maximum grace period of two years. In cases of special restructuring, banks may allow an additional maximum period of four years beyond the tenure specified under paragraph 6(1) of BB Circular No. 16 of 2022. For borrowers with a loan outstanding of less than Taka 1,000 crore, the periods specified under BB Circular No. 07 of 2025 will remain applicable.
Implementation and Deadlines
Borrowers who had previously received policy support under BB Circular No. 07 of 2025 or through the selection committee are eligible for the facilities outlined in the latest directive. Additional time may be granted where necessary by considering the period already elapsed in the grace period as part of the grace period stipulated in the circular.
For fresh applications submitted by September 30, 2026, unclassified loans (STD-0, STD-1, STD-2, and SMA) may receive restructuring facilities, while classified loans (SS, DF, and B/L) may receive special rescheduling facilities in line with the relevant circulars. Banks have been instructed to settle all applications under the directive after collecting the required down payment by December 31, 2026.
The latest directive, issued under the powers vested in Bangladesh Bank by Section 49(1)(Cha) of the Bank Company Act, 1991, will take effect immediately. This extension aims to provide relief to borrowers affected by financial distress, allowing them more time to restructure their loans and avoid default.







































