B Mirror Report: Bangladesh Bank has eased its down payment requirements in a move aimed at providing breathing space to struggling businesses, allowing eligible borrower institutions to initially pay half of their required down payment to support financial reorganization.
According to a directive issued today by the Banking Regulation and Policy Department (BRPD) of the central bank, qualified institutions will now be allowed to deposit 50 percent of the stipulated down payment at the time of application, with the remaining 50 percent to be paid later.
The latest measure represents a notable relaxation of loan rescheduling and exit facilities earlier introduced under BRPD Circular No. 07/2025 and BRPD Circular Letter No. 26/2025. The liquidity-support initiative is specifically intended for institutions seeking restructuring under those policy frameworks.
Under the newly introduced 50/50 arrangement, affected borrowers must submit half of the pre-fixed down payment along with their application. Financing institutions will then collect the outstanding half within the following six months. The staggered payment structure is designed to ease immediate cash-flow pressures on industrial and business entities while maintaining a structured path toward repayment.
The central bank has also incorporated provisions for institutions that previously received policy support but were unable to implement it due to valid operational reasons. To prevent reorganization plans from being disrupted by practical limitations, scheduled banks and financial institutions have been authorized to extend pre-determined implementation deadlines by an additional three months. The extension is expected to provide borrowers with critical time to complete necessary restructuring steps.
Regarding interest waivers, the central bank reiterated that the authority rests with the respective financing institutions. Any decision to waive interest must be approved by the Board of Directors of the concerned institution. The bank emphasized that such decisions should align with internal policies and established banker-customer relationships, ensuring that concessions remain within a sound regulatory and professional framework rather than being influenced by centralized directives.
