Bangladesh, Nov. 5 -- Bangladesh Bank has exempted five defaulting City Group companies from a lending restriction until 31 December 2027, allowing a City Bank-led consortium to provide up to Tk3,000 cr in working capital loans, with Tk1,700 cr agreed in the initial phase.

The Bangladesh Bank has granted a special exemption from the Bank Company Act, 1991, to allow banks to provide fresh working capital loans to debt-defaulting City Group, clearing the way for an eight-bank consortium led by City Bank to extend financing to five of the group's companies.

The central bank's circular allows the consortium to provide working capital facilities of up to Tk3,000 crore to the five companies, with the exemption from the relevant legal restric...