Bangladesh Bank has announced a special rescheduling facility for businesses whose operations were disrupted before the country’s political transition in July.

Under a circular issued Tuesday, affected enterprises will be able to reschedule classified loans for up to 10 years, with a maximum two-year grace period. Borrowers may suspend principal or interest payments during this time.

The central bank said the measure aims to support investment- and employment-generating firms struggling with factors such as the economic slowdown, currency volatility, and utility disruptions. It noted that loan-servicing difficulties had spilled over into banking operations, posing risks to financial stability.

Firms must apply through their banks by 31 December 2025. A minimum down payment of 2% will be required, rising to 3% for loans previously rescheduled three or more times. Interest rates may be set at 1% below the lowest rate in the relevant sector.

Banks must assess repayment capacity, and loans above Tk 3bn may be referred to a central scrutiny committee. Deferred interest cannot be recorded as income until realised, while overdue instalments will trigger reclassification.

The facility excludes fraudulent loans and borrowers declared wilful defaulters. The circular took effect on 16 September and will remain valid until 30 June 2025.