Importers, who faced losses due to foreign exchange rate spikes, can now repay their loans over a maximum period of eight years.
The Bangladesh Bank issued a circular on Wednesday detailing the new repayment facility.
Eligible loans will be recalculated separately and can be repaid monthly or quarterly with a one-year grace period.
This facility is available only to businesses that incurred losses from delayed loan repayments under specific terms.
The central bank attributed the challenges to the combined effects of the Covid pandemic, the Russia-Ukraine war and global economic uncertainties, which have significantly devalued the Bangladeshi taka.
This devaluation has caused exchange rate losses for industries dependent on imported raw materials, reducing production capacity, creating forced loans and leading to working capital deficits.
The directive is expected to benefit sectors like steel, cement and food, as the government regulates their product prices.
Losses arising from exchange rate volatility for letters of credit opened between January and December 2022 will be assessed by banks using methods specified by the Bangladesh Bank.
After analysing customer risk and the bank-customer relationship, the loss amount can be converted into a term loan outside the usual working capital limits.
These term loans must be repaid in equal installments within eight years, including the one-year grace period.
Banks are required to ensure that the single borrower exposure limit is not breached and errant borrowers are excluded from the facility.聽 Businesses must apply for the facility by March 31, 2025.
Banks must also verify and document the actual exchange rate impact for inspection by the Bangladesh Bank.
Since December 2021, the exchange rate for the US dollar has surged from Tk 90 to Tk 120, leaving many businesses unable to repay loans, thus increasing the risk of default.