The Bangladesh Bank has approved a special loan-rescheduling package for the troubled Gazi Group, allowing the conglomerate an 11-year period to repay its defaulted loans, with a two-year grace period, officials confirmed.

Following a recent government policy update, the central bank’s high-powered loan-rescheduling committee instructed 19 commercial banks and financial institutions to keep Gazi Group’s transactions smooth and proceed with the rescheduling process. The decision comes weeks after another major corporate defaulter, Nassa Group, received similar debt relief.

Under the new arrangement, Gazi Group is required to make a 2% down payment to reschedule about Tk 2.14 billion of its loans. According to the central bank’s Credit Information Bureau, the group and its seven affiliates owe around Tk 26.25 billion to various banks and non-bank financial institutions.

Founded in 1974, Gazi Group has operations across manufacturing, trading, ICT, media, and renewable energy. Its subsidiaries include Gazi Tanks, Gazi Pipes, Gazi Auto Tyres, Gazi Television, and Gazi Renewable Ltd.

The rescheduling comes after a fire devastated one of the group’s factories in Rupganj, Narayanganj, in August 2024, shortly after the arrest of its owner, former minister Golam Dastagir Gazi.

The central bank has directed the group to submit an audit report by an international accounting firm assessing losses, insurance claims, and repayment capacity. Shahjalal Islami Bank, the group’s largest lender, has been tasked with reviewing the report and coordinating with other creditors.

Banks have three months to comply with the rescheduling directive.