Bangladesh, July 30 -- From now on, struggling borrowers will have to withdraw all legal cases against the government, the Bangladesh Bank (BB), or the commercial bank concerned before being eligible for any form of incentives or policy support announced by the banking regulator.

Issuing a circular on Wednesday, the central bank stated that the new directive was aimed at facilitating employment generation, boosting credit flow to productive sectors, and fostering a private investment-led economy.

The BB said it had already introduced a series of measures to revive economic activities, including policy support for reopening export-oriented closed factories and extending financial assistance to borrowers in the agriculture as well as Co...