Dhaka, Sept. 16 -- Bangladesh Bank has issued a new directive, providing special facilities for the rescheduling and restructuring of non-performing loans (NPLs).

According to the circular issued on Tuesday, banks can now reschedule defaulted loans for up to 10 years. Borrowers will need to make a minimum down payment of just 2 percent and will receive a two-year grace period.

The interest rate on these loans will be one percentage point lower than the lowest rate in the relevant sector.

The central bank's circular states that applications for loans exceeding Tk 300 crore can be submitted to a central bank selection committee for policy support. Loans classified as "adverse" as of June 30 of the current year are also eligible for resch...