Bangladesh Bank has extended the deadline for raw jute exporters to apply for loan rescheduling by an additional three months, offering crucial financial relief to a sector grappling with lingering trade disruption and operational strains.
Under the revised directive, affected exporters now have until 30 September 2026 to submit their applications to their respective commercial banks alongside a required 2 per cent down payment. The decision was formally announced in a circular issued by the Banking Regulations and Policy Department-1 of the central bank on Thursday, 24 September 2026.
According to the central bank’s updated policy, the rescheduling facility applies specifically to classified loans categorised as adverse—encompassing sub-standard (SS), doubtful (DF), and bad or loss (BL) accounts. To qualify, exporters must deposit 2 per cent of their outstanding defaulted debt balance as recorded on 31 December 2025.
This extension comes as a direct response to representations made by industry trade bodies and exporters who revealed that many businesses had struggled to meet the original application window, which expired on 30 June 2026. Global demand fluctuations, logistical bottlenecks, and domestic supply challenges severely disrupted cash flow, leaving numerous exporters unable to muster the required down payment within the initial timeframe.
Recognising these ongoing structural hurdles, Bangladesh Bank instructed all financial institutions to process and settle all incoming applications by 31 December 2026, provided the down payment conditions are met. All other terms, conditions, and governance safeguards outlined in the original regulatory guidelines remain strictly unchanged.
Raw jute remains one of Bangladesh’s vital traditional export commodities, contributing significantly to rural employment, industrial manufacturing, and foreign exchange earnings. Over recent years, however, the sector has faced compounding pressures, including escalating raw material costs, shifting international buyer requirements, and stiffer competition from synthetic substitutes in overseas markets. Central bank officials hope this extended window will help stabilize balance sheets across the sector, prevent widespread corporate defaults, and enable exporters to restore regular commercial operations heading into the next fiscal period.
