BB reopens loan rescheduling facility for shipbuilding industry
The central bank issued a circular today (20 January), directing all commercial banks to implement this measure immediately. This policy had previously expired on 31 December 2023, leaving the sector without a dedicated rescheduling window until this latest intervention.
The Bangladesh Bank has reinstated a special loan rescheduling facility for the shipbuilding industry, allowing defaulted borrowers to regularise their loans with a 3% down payment until 30 June this year.
The central bank issued a circular today (20 January), directing all commercial banks to implement this measure immediately. This policy had previously expired on 31 December 2023, leaving the sector without a dedicated rescheduling window until this latest intervention.
The Bangladesh Bank reopened the option for loan rescheduling in the sector, while also revising the required down payment upward by 50 basis points – from 2.5% to 3%.
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The decision was made in view of prolonged geopolitical tensions, military instability in Europe, supply chain disruptions and a slowdown in the global economy, all of which have adversely affected the cash flows of both export-oriented and domestic shipbuilding companies, states the circular.
Bangladesh Bank said the measure aims to keep the shipbuilding industry operational, considering its potential as an export-oriented sector as well as its role in producing import-substituting goods. The facility will be granted on a case-by-case basis following a review of applications from genuinely affected firms facing difficulties due to factors beyond their control.
Under the existing guidelines, loans or leases in the shipbuilding industry can be rescheduled for up to 10 years, including a grace period of two years, in line with the earlier circulars issued by the central bank.
