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The Bangladesh Bank has relaxed its down payment requirement for distressed borrowers, allowing eligible institutions to pay only half of the required amount at the time of applying for loan rescheduling or reorganisation.

In a directive issued on Sunday, the central bank’s Banking Regulation and Policy Department said affected borrowers can now deposit 50 per cent of the pre-determined down payment with their application. The remaining 50 per cent must be paid within six months.

The move softens earlier conditions set under BRPD Circular No. 07/2025 and BRPD Circular Letter No. 26/2025, which laid out frameworks for loan rescheduling and exit strategies.

Officials said the staggered payment structure is aimed at easing immediate cash-flow pressure on industrial and business entities, while keeping the repayment process on track.

Extra time for implementation

The central bank has also allowed flexibility for borrowers who previously received policy support but could not implement it for valid reasons.

Scheduled banks and financial institutions are now permitted to extend the pre-determined implementation deadline by an additional three months. The extension is intended to give businesses time to complete reorganisation steps that were delayed due to practical constraints.

Interest waiver at board discretion

On interest waivers, the central bank reiterated that decisions must be taken by the respective boards of directors of banks and financial institutions.

Such decisions, it said, must align with internal policies and the established banker–customer relationship, ensuring that concessions remain within a professional and regulatory framework rather than being centrally dictated.