News Flash
DHAKA, April 30, 2026 (BSS) – Bangladesh Bank (BB) has announced significant amendments to the Operating Guidelines of its Long Term Financing Facility (BB-LTFF), aiming to better align the program with prevailing market conditions and enhance its attractiveness to Participating Financial Institutions (PFIs) and their clients.
The updated guidelines will come into effect from tomorrow and will be applicable to both existing and future loans under the facility, said a BB circular issued today.
Under the revised structure, Bangladesh Bank has set an indicative pricing range between one percent and two percent for PFIs.
The applicable rates will depend on the institutions’ CAMELS ratings and the tenure of financing.
Banks with a CAMELS rating of one will be eligible for rates starting at one percent for up to five years, increasing to 1.50 percent for ten-year tenures.
Institutions rated two will face rates ranging from 1.25 percent to 1.75 percent, while those rated 3 will have rates between 1.50 percent and 2.00 percent depending on the loan duration.
The central bank noted that these rates may be adjusted in future in response to market dynamics.
The amended guidelines also clarify how PFIs will determine lending rates for borrowers. Banks are required to consider their cost of funds and operational expenses, along with a reasonable risk-adjusted spread. The final spread and profit margin must remain within a band of 2.00 percent to 3.00 percent above the cost of funds.
In a move to ensure wider access while maintaining financial discipline, the central bank has updated borrowing thresholds. An individual borrower will be able to access up to $10 million through a single PFI, while the limit for syndicated financing involving multiple institutions has been set at $20 million. These limits will also apply to procurement arrangements under the facility.
Bangladesh Bank has confirmed that all other provisions of the original circular issued in July 2023 will remain unchanged and fully effective.
