Editorial, News & commercial office:
55/A, H M Siddique Mansion (Level-7), Purana Paltan, Motijhel C/A, Dhaka-1000. Phone: +8802226640056,
e-mail: [email protected], [email protected]
In an effort to revitalize shuttered manufacturing units, stabilize the industrial ecosystem, and generate an estimated 2.5 million jobs, Bangladesh Bank has unveiled a BDT 60,000 crore stimulus and policy support refinancing framework, while instituting a mandatory prerequisite requiring borrowers to unconditionally withdraw all ongoing court litigations and writ petitions filed against the state, the central bank, or lending institutions.
The policy directive, recently circulated to all Non-Bank Financial Institutions (NBFIs/Finance Companies), extends earlier conditionalities imposed on commercial banks, standardizing the eligibility criteria across the financial services architecture.
According to the central bank circular, substantial public funds and preferential restructuring mechanisms have been designated to rehabilitate distressed industrial entities, foster sustainable GDP growth, and protect worker livelihoods. However, regulatory monitoring revealed that several beneficiary enterprises had availed themselves of concessional policy facilities while maintaining active legal challenges and writ proceedings against the government, Bangladesh Bank, or respective financiers, exacerbating backlog across the judicial system and impeding loan resolution.
Under the amended directives, finance companies may only entertain stimulus or policy support applications on the explicit condition of litigation disposal. Once a financial institution grants in-principle approval following preliminary appraisal, the borrower must take formal legal steps to withdraw all pending suits and writ petitions.
Following formal withdrawal, the applicant must submit a certified affidavit containing a comprehensive list of resolved cases, affirming that "no litigation or writ petition remains pending against the Government of Bangladesh, Bangladesh Bank, or the concerned finance company." Upon receipt of the authenticated affidavit, the lending institution is prohibited from altering agreed restructuring terms and must implement the approved package in strict conformity with the initial in-principle clearance.
