Bangladesh Bank has directed 37 banks not to classify City Group as a loan defaulter until September 30, 2026, following requests from the company and the Association of Bankers Bangladesh (ABB). The decision aims to provide temporary relief to one of the country’s largest industrial conglomerates, which owes over Tk 24,000 crore to 47 domestic and foreign banks and financial institutions. City Group cited severe financial pressure caused by global and domestic crises, currency depreciation, and rising interest rates as reasons for seeking policy support.

In its appeal, City Group stated that it has never defaulted in its 50-year history but is now struggling due to increased production costs, foreign exchange losses, and delayed gas connections at its Hosendi Economic Zone factories. The group requested seven forms of policy assistance, including loan reclassification suspension, extended working capital, and relaxed single borrower limits. ABB supported the request, warning that disruption to City Group’s operations could affect national food supply.

Senior bankers and Bangladesh Bank officials noted that the relief is temporary and that sustainable recovery will depend on restoring production and restructuring loans. A committee of lending banks is currently working on a recovery plan.