Bangladesh Bank has granted a three-month extension to raw jute exporters seeking to reschedule their classified loans, offering crucial financial breathing space to a traditional sector grappling with foreign trade hurdles and acute liquidity pressures.

Under the updated directive, exporters now have until 30 September 2026 to submit their loan rescheduling applications to their respective commercial banks. To qualify, borrowers must deposit a mandatory 2 per cent down payment calculated against their total outstanding classified debt balance recorded on 31 December 2025.

The Banking Regulations and Policy Department-1 of the central bank officially published the circular letter on Thursday, 24 September 2026, exercising its powers under Section 45 of the Bank Company Act, 1991. The instruction takes effect immediately across all scheduled commercial banks.

The restructuring facility covers accounts categorized under adverse classified debt, encompassing sub-standard (SS), doubtful (DF), and bad or loss (BL) statuses. The regulator had previously set an application deadline of 30 June 2026 following an earlier relief measure introduced via a circular issued on 22 February 2026. However, industry representatives subsequently notified Bangladesh Bank that numerous exporters were unable to secure the required down payment or finalize documentation within the original timeframe due to complex international trade dynamics, delayed buyer receipts, and ongoing operational bottlenecks.

Central bank guidelines require recipient banks to examine all incoming applications, collect the requisite 2 per cent down payment, and formally settle every account by 31 December 2026. All other terms, conditions, and governance safeguards laid out in earlier circulars remain fully binding.

Raw jute represents one of Bangladesh’s fundamental traditional export commodities, sustaining rural employment and generating valuable foreign currency. In recent years, local exporters have faced compounding challenges, including fluctuating raw material costs, shifting overseas demand, and stiff competition from synthetic alternatives. Central bank officials anticipate this final extension will help affected firms restructure their obligations, avoid default status, and normalize commercial operations.