Bangladesh Bank has signaled its intent to support the revival of closed industrial units through a strategic refinancing package, but has firmly ruled out blanket bailouts for non-viable or willfully defaulted businesses.

The decision came following a high-level meeting between central bank officials and a delegation of industrial stakeholders at the Bangladesh Bank headquarters on Monday. Bangladesh Bank Governor  Md. Mostaqur Rahman chaired the meeting.

During the meeting, stakeholders raised concerns about the growing number of shuttered factories. In response, the central bank clarified that while a refinancing package reportedly around Tk 40,000 crore is being considered, the support will be strictly merit-based.

"We need to investigate why these industries closed down—whether it was due to power shortages, lack of buyers, or market fluctuations," said Abdul Hai Sarker after the meeting. He is the Chairman of Bangladesh Association of Banks (BAB) and also Chairman of Purbani Group, who joined the meeting as a representative of the industrial delegation.

"The Governor has assured us that only 'genuine' businesses facing temporary working capital shortages will be supported to ensure production resumes and defaults are avoided,” said BAB Chairman.

The discussion also touched upon the controversial Section 18 (Ka) of the Bank Resolution Act. Business leaders expressed "deep apprehension" regarding the potential implementation of this law, fearing it might be misused to allow former directors—who were allegedly involved in past bank looting—to regain control of financial institutions.

However, central bank sources indicated that the stringent conditions attached to the act would make it practically impossible for such controversial figures to meet the criteria for return. Stakeholders urged the government to handle this legislative matter with extreme caution to protect the sector from further "looting cultures."

The central bank also reiterated that the planned merger of five specific banks will proceed without change. Despite initial skepticism from some quarters, the Governor emphasized that the merger is essential to put the banking sector back on "the right footing."

Industrialists urged the government and the central bank to consult with general stakeholders before finalizing major policy interventions. "We are elected representatives and industrialists; we are here to share our fears and ground realities. Policy-making is more effective when it includes those who are actually operating in the sector," in response to a query of journalists, a representative of businessmen said.