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Bangladesh Bank (BB) has been granting sweeping loan rescheduling facilities to politically connected businesses, in some cases contradicting its own circulars and inspection findings, raising concerns among bankers and central bank officials.

A denim mill owned by an influential businessman was allowed to reschedule loans across 12 banks for 12 years with no interest, regularising accounts with just a 2% down payment and a two-year grace period. Another spinning mill owned by the same person, despite having loans already written off, was also granted rescheduling — a move inconsistent with BB’s rules, which require legal recovery once a loan is written off.

The central bank’s rescheduling committee has already cleared around 400 companies under “special consideration.” In many cases, banks were instructed to comply with BB’s decisions rather than negotiate directly with borrowers.

High-profile beneficiaries

• Ankur Specialized Cold Storage Ltd, a top defaulter of Rupali Bank and Rajshahi Krishi Unnayan Bank with Tk56 crore in bad loans, was given a fresh rescheduling despite being classified as a wilful defaulter.
• Intensity Ltd, an exporter with Agrani Bank, obtained loans using forged export contracts, creating Tk28 crore in liabilities. Despite evidence of fraud, the firm was given rescheduling.
• Tanaka Group, another Agrani defaulter, benefited despite BB finding “serious irregularities” in its paper concern, Swiss Quality Paper (BD).
• Hamid Fabrics (Mahin Group) secured a 10-year rescheduling across seven banks on only a 2% down payment, though BB rules cap the term at eight years.
• Aftab Group rescheduled loans of four affiliates across nine banks and one NBFI for 10 years, also on a 2% down payment.
• Universal Medical College & Hospital received 8–12 year facilities with up to two years’ grace period.

Committee under scrutiny

The rescheduling committee, formed in January 2025 under BB’s Policy Support Committee, was tasked with handling large loans defaulted “due to factors beyond borrowers’ control.” But insiders admit wilful defaulters and politically linked firms have also been accommodated.

One member said the committee considered some cases “beyond its Terms of Reference,” citing political persecution, imprisonment, or business losses tied to the previous regime or to the dominance of S Alam Group.

Critics within BB say this has opened the door to lobbying and governor-level interventions. “These concessions undermine credit discipline and put undue strain on banks,” one senior banker said.

Policy shift ahead

Amid mounting pushback, BB plans to issue a new circular returning discretion to individual banks, allowing them to decide on rescheduling terms. However, facilities already granted under the committee’s direction will remain valid.