One-time exit facility offered for distressed borrowers until Dec

The Bangladesh Bank has introduced a special one-time exit facility for borrowers whose businesses have been affected by circumstances beyond their control.
The facility is intended to facilitate the recovery of long-outstanding classified loans, reduce non-performing assets and improve liquidity. 
Loans classified as bad/loss as of 30 June 2026 will be eligible, subject to board approval and the lender-borrower relationship. The facility will remain in effect until 31 December 2026.
Under the scheme, borrowers must settle their entire liabilities through a single lump-sum payment. 
The principal amount cannot be waived under any circumstances, although finance companies may waive accrued interest following a proper assessment.
Where interest waivers require relaxation of funding cost recovery or charges to the profit and loss account, the proposal must first undergo an internal audit and receive endorsement from the head of Internal Control and Compliance. 
Loans involving fund diversion, fraud, forgery or other irregularities are excluded from the facility.
Loans rescheduled between 6 August 2024 and 30 June 2026 will also qualify for the facility. 
Priority should be given to short-term agricultural loans and cottage, micro, small and medium enterprise (CMSME) loans.
Bangladesh Bank said the new policies are designed to align the country’s loan write-off framework with international best practices while strengthening governance, enhancing transparency and improving the recovery of long-overdue defaulted loans.