Labonno Chowdhury : The Tk 860m Question: New Central Bank Governor Under Fire Over Defaulted Loan. The Mutual Trust Bank (MTB) restructured a defaulted loan of Tk 860 million belonging to the garment factory of the newly appointed Bangladesh Bank Governor Md Mostaqur Rahman approximately two months ago.The debt held by Hera Sweaters Limited was renewed under the central bank’s policy guidelines after a 2 percent down payment was made. A senior executive from MTB and a senior official from Bangladesh Bank have confirmed the details of this rescheduling.
Both of them declined to be named for this story because of the sensitivity of the matter. Following the announcement of Mostaqur, a prominent apparel businessman and the MD & CEO of Hera Sweaters, as the new governor, discussions over his status as a loan defaulter have intensified on social media.
On Wednesday, the BNP government led by Tarique Rahman appointed Mostaqur to the helm of the central bank, replacing economist Ahsan H Mansur.
This marks the first time in Bangladesh’s history that a businessman has been appointed governor, a role traditionally held by bankers, economists, or career bureaucrats. Mostaqur, a former accounting student and an FCMA, also served on the BNP’s election management committee during the parliamentary elections.According to officials, the debt had been classified as “bad” or defaulted for some time before being rescheduled for a 10-year term. The restructuring took place last December, coinciding with the announcement of the election schedule.
“Hera Sweaters, being in the export sector, was unable to repay the bank due to a lack of regular orders,” an MTB executive said. “The firm, however, has the capacity to increase exports.“Following the policy support circular issued by Bangladesh Bank, the company applied for rescheduling. It offered a 2 percent down payment, which the board subsequently approved.”
The official added that despite the factory’s large scale, it struggled to secure enough work, leading to missed instalments.Consequently, the accumulated interest and principal eventually fell into default.A senior Bangladesh Bank official told bdnews24.com that a new circular providing policy support for rescheduling defaulted loans was issued in September 2025.
Under these provisions, Mostaqur renewed the Hera Sweaters loan to facilitate the business and financial reconstruction of the distressed borrower.The MTB official confirmed the rescheduling occurred in mid-December.Bangladesh Bank had issued circulars in both September and November 2025, offering increasingly relaxed terms.
The November circular allowed defaulted loans (as of Nov 30) to be rescheduled for up to 10 years, including a maximum two-year grace period.Moreover, on Feb 22, the central bank eased terms again, allowing rescheduling with a 1 percent down payment instead of 2 percent, provided an additional 1 percent is paid within the following six months.
