Dhaka, March 10 -- Bangladesh Bank has further relaxed its loan exit policy, reducing the required down payment from 10 percent to 5 percent after a lacklustre response.

The central bank issued a new policy in July 2024, allowing defaulters to clear their loans in phases and exit the default status.

The Banking Regulation and Policy Department, or BRPD, sent a notification on Monday to all bank CEOs and managing directors, introducing fresh relaxations.

A senior Bangladesh Bank official said the relaxation was introduced due to the policy's initial weak response.

Under the new terms, defaulters can repay their loans over three years by making an initial payment of just 5 percent, down from 10 percent.

While bank boards or executive c...