The Bangladesh Bank has unveiled a roadmap aiming to reduce default loans to below 8% by June 2026. As of September last year, default loans in the banking sector amounted to Tk1.55 lakh crore, approximately 10% of the total outstanding, according to Bangladesh Bank data.
he new roadmap is in line with the International Monetary Fund (IMF) conditions as part of a $4.7 billion loan package. It emphasizes the pivotal role of shareholder directors and managing directors in the recovery process. Furthermore, the central bank has modified the loan write-off policy, allowing banks to write off loans in two years instead of the previous three, potentially reducing default loans by 2.76%, equivalent to Tk43,300 crore.
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