Business leaders applaud BB support for distressed borrowers

The business community welcomed Bangladesh Bank’s special policy support for distressed borrowers, saying it will revive struggling industries, strengthen SMEs, and stimulate the economy.

They also praised the central bank for taking a pragmatic decision amid the current challenges facing the country’s trade and economy.

BKMEA President Mohammad Hatem thanked BB for announcing special policy support for distressed borrowers, a long-standing demand of the business community.

“Most businesspeople are now in crisis. Previously, only defaulters with loans over Tk50 crore were eligible, but the circular now includes those below Tk50 crore. It’s a positive move that will help reduce loan defaults,” he added.

Speaking about the central bank’s 10-year plan, the BKMEA president said, “Some businessmen may need 12 to 15 years. I believe the tenure could be extended up to 15 years, given the current crisis many are facing, or it could be adjusted based on individual situations,” he added.

Replying to a question, he said Bangladesh Bank allows defaulters to regularise loans by paying 2% of the outstanding amount, which should be adjusted based on business conditions.

“The three-instalment rule should be increased to six for businesses. If a borrower fails to pay three consecutive monthly instalments, they risk being classified as a defaulter again, so six instalments are more reasonable,” he said.

BGMEA Director Faisal Samad said, “The interim government has made a positive decision by providing this support. It will assist struggling industrialists and help revive particularly sick industries.”

Faisal Samad, also managing director of Surma Garments Ltd, said the initiative opens a new export door in the US, helping many garment industries revive and allowing SMEs to benefit.

DCCI President Taskeen Ahmed said the central bank’s decision is positive, but a “clear direction” is needed for SMEs.

“SMEs often lack access to top bank officials, leaving issues unresolved, while large companies get solutions easily. The circular prioritises board-level resolution for SMEs,” he said.

Taskeen Ahmed highlighted that businesses have struggled over the past three years due to economic slowdown, the dollar crisis, and high bank interest rates.

He said the special support will help revive sick industries amid these challenges. Earlier on Tuesday, BB issued a circular allowing loan rescheduling for defaulting businesses to revive banks and boost the economy.

According to the circular, banks must decide on rescheduling applications within six months, with final approval by their boards. One-time settlements allow a year for repayment without BB’s no-objection certificate. By June, defaulted loans hit Tk5.3 lakh crore, up over Tk3 lakh crore in a year. Bangladesh Bank allows affected businesses to restructure loans by paying 2% upfront, with a maximum tenure of 10 years.

Regularised loans come with a two-year repayment grace period, and applications must be submitted to banks by 31 December, the circular said.