A selection committee has been established to help borrowers whose businesses or institutions have been impacted by events beyond their control, Bangladesh Bank announced in a notification on January 30, 2025. In addition to ensuring bank loan recovery, the committee will make recommendations on how to help these troubled borrowers get back on their feet and grow their businesses to a sustainable and profitable level.

Many borrowers have experienced business disruptions as a result of COVID-19, the Russia-Ukraine war, the global economic slowdown, natural disasters like floods, and the political climate in the nation. Bangladesh Bank is acting in a number of ways to maintain the nation’s banking industry and economy in light of this circumstance. This new initiative has been implemented.

The committee aims to properly assess borrowers and provide assistance in their restructuring. The committee will make recommendations to restore the borrowers’ businesses and ensure loan recovery. In particular, loans of Tk 50 crore or more that have been classified as uncontrollable factors will also be included in this process.

The committee is composed of five members, including:

– Mezbah-ul-Haq, Executive Director, Offsite Supervision Division, Bangladesh Bank

– Dr. Delwar Hossain, Joint Secretary, Ministry of Finance

– Mamun Rashid, Economist

– Abdul Haq, Trade Representative from Haqq Bay

– Syed Shahriar Ahsan, Member, Financial Institutions Division

The committee will evaluate how to help borrowers with restructuring during its frequent meetings. The committee may convene twice a month, and plans have been put in place to compensate its members.

Bangladesh Bank hopes to support the recovery of impacted borrowers and preserve the stability of the domestic banking industry with this initiative.