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Bangladesh Bank has introduced a special exit facility for borrowers struggling to repay loans due to adverse economic conditions and factors beyond their control, allowing finance companies to recover classified loans through one-time settlement agreements under specified conditions.
The central bank issued the directive in a circular on Thursday through its Financial Institutions Inspection and Policy Department.
According to the circular, many businesses, industries and entrepreneurs have been adversely affected by circumstances beyond their control, leading to business closures and repayment difficulties. The special policy aims to facilitate loan recovery through negotiated one-time settlements.
Under the new facility, finance companies may offer the special exit option for loans classified as of June 30, 2026, until December 31, 2026.
Borrowers seeking the facility must settle their liabilities through a one-time agreement. While the principal amount of the loan cannot be waived, finance companies may partially or fully waive outstanding interest, depending on the circumstances.
Bangladesh Bank, however, clarified that the facility will not apply to loans involving fund diversion, loan fraud or any other form of financial misconduct.
The central bank also instructed finance companies to give priority to borrowers in the agriculture sector and cottage, micro, small and medium enterprise (CMSME) sector when extending the facility.
Finance companies have been directed to inform eligible borrowers about the scheme and take the necessary internal measures to implement the policy.
The special exit facility will remain in force until December 31, 2026, the circular said.
