DHAKA, Feb 8, 2026 (BSS) – Bangladesh Bank (BB) has extended the deadline for scheduled banks to apply for the Taka 2,000 crore refinance scheme dedicated to the development and expansion of the country's shipbuilding industry. 

According to a circular issued by the central bank today, the application deadline for the scheme has been pushed to December 31, 2026, in a strategic move to enhance the nation’s export earnings potential.

The central bank, in its BRPD Circular Letter No. 04, noted that the timeline for the refinance scheme for the development, operation, and growth of the Shipbuilding Industry" has been significantly revised.

 The original deadline for banks to submit applications for refinance facilities was June 30, 2024. 

The extension comes as the central bank seeks to provide adequate financial support to a sector identified as a high-growth area for foreign exchange earnings.

The refinance scheme was initially launched through BRPD Circular No. 09 on May 26, 2022, with a total fund size of Taka 2,000 crore.

 The central bank's Banking Regulation and Policy Department-1 (BRPD-1) issued the latest directive, emphasizing that the extended timeframe will allow financial institutions to better facilitate credit for shipbuilding projects.

Under the eligibility criteria outlined in Paragraph 4 of the guidelines, all scheduled banks operating in Bangladesh are eligible to participate in the program. 

To access the fund, interested banks are required to enter into a formal participation agreement with the Banking Regulation and Policy Department-3 (BRPD-3) of Bangladesh Bank.

Regarding operational procedures, the central bank specified that participating banks must maintain independent credit decision-making based on their internal policies and risk assessments. 

However, before sanctioning any loan under this scheme, banks must obtain confirmation from BRPD-3 regarding the availability of funds. 

A critical requirement for this confirmation is the submission of a detailed loan disbursement and repayment schedule alongside the bank's application.

The circular further detailed that loans are to be disbursed to customers in installments, linked to the physical progress and feasibility of the shipbuilding projects. 

Banks can claim the refinance from the central bank only after the credit has been disbursed to the customer. Notably, the scheme allows banks to claim refinance against interim installments to assist with liquidity management during long-term projects.

Provisions for Shariah-based financing have also been incorporated to ensure the participation of Islamic banking institutions. 

As per Paragraph 15(gh) of the circular, Islamic banks and traditional banks with Islamic windows are permitted to provide investments under this scheme. 

These institutions must utilize Shariah-compliant investment modes approved by BRPD-3, ensuring the terminology and structure of the financing align with Islamic principles.

The central bank clarified that all other instructions and terms detailed in the original circular of May 2022 will remain unchanged. This directive has been issued under the authority vested in the central bank by Section 45 of the Bank Company Act, 1991, and takes effect immediately.