BB extends loan rescheduling facility for jute exporters until Dec 2025

The Bangladesh Bank (BB) has extended the loan rescheduling facility for raw jute exporters until 31 December 2025, giving struggling exporters additional time to regularise their outstanding loans.

According to a circular issued by the central bank on Monday, exporters will now be able to reschedule their loans over the next two years by making a 2% down payment on their outstanding loan amounts as of 31 December 2024.

The move comes in response to exporters’ continued difficulties in meeting the requirements of earlier rescheduling schemes, which were introduced to address persistent challenges in the raw jute export sector.

Earlier, on 31 March 2024, the central bank had issued a circular instructing raw jute exporters to submit their applications for loan rescheduling within six months of that date. However, many exporters were reportedly unable to complete the process within the stipulated timeframe due to ongoing financial and operational constraints.

By extending the facility, the Bangladesh Bank aims to support the recovery of the jute export sector- one of the country’s traditional foreign currency earners- which continues to face challenges arising from declining global demand and payment delays.