Bangladesh Bank has directed financial companies to complete the receipt of applications and board approvals for special rescheduling and restructuring facilities for eligible distressed borrowers by December 31, 2026.
The directive, reported on October 27, refers to earlier circulars dated July 16 and August 31 and instructs financial companies to finish the relevant procedures, including approval by their boards, within the year-end deadline.
The central bank said other existing provisions remain unchanged. The facility is intended for distressed but potentially viable borrowers; it is not an automatic waiver of debt or an unconditional restructuring entitlement for all borrowers.
Illustrative photograph: Unsplash.