Monirul Alam :
Bangladesh Bank (BB) has extended the intra-company loan facility for the local enterprises operating in the Export Processing Zones (EPZs) and Economic Zones (EZs).
From now on, a ‘C’ type company, which known as local investor in EPZs and EZs, could borrow from its parent company or a subsidiary or a sister concern to meet emergency need for foreign currency for import or payment with regard to its dues with EPZ and EZ authorities or other bonafide business partners.
Companies having fully foreign investment are known ‘A’ type and that of joint ventures called ‘B’ type.
The Foreign Exchange Policy Department (FEPD) of the central bank issued a circular to this effect on Thursday asking compliance of all of the authorized dealers (Ads) of Foreign Exchange of banks operating in the country.
“This initiative is aiming to ease business process and aiding local companies to expand business as much as a company can,” said Debashish Sarkar, Deputy General Manager of the FEPD of the central bank.
“But, it is subject to having sufficient balance in the Foreign Currency (FC) account of the respective company or its parent, or sister concern or a subsidiary,” he added.
He added the initiative will reduce hassle to get urgent financing from a bank or a financial institution or AD of an international lender.
Earlier, local companies had to obtain prior approval from the central bank in such cases, which involved time and hassle.
This unique facility was open only for companies having fully foreign investment and joint ventures with local investors in EPZs and EZs, he said.
He said the latest initiative of the central bank will increase competitiveness of the local investors, who run an export-oriented company in the EPZs or EZs.
In the circular, the central bank said other terms and conditions to get this facility will followed the guidelines on foreign currency transactions.
Local companies have been contributing a lot to the country’s overall export basket.
In case of borrowing from foreign financial institutions, the ADs are asked to hold collateral against the loan amount from the borrowers. This directive will be effective for all the ‘A’, ‘B’ and ‘C’ type companies.
Bangladesh Bank (BB) has extended the intra-company loan facility for the local enterprises operating in the Export Processing Zones (EPZs) and Economic Zones (EZs).
From now on, a ‘C’ type company, which known as local investor in EPZs and EZs, could borrow from its parent company or a subsidiary or a sister concern to meet emergency need for foreign currency for import or payment with regard to its dues with EPZ and EZ authorities or other bonafide business partners.
Companies having fully foreign investment are known ‘A’ type and that of joint ventures called ‘B’ type.
The Foreign Exchange Policy Department (FEPD) of the central bank issued a circular to this effect on Thursday asking compliance of all of the authorized dealers (Ads) of Foreign Exchange of banks operating in the country.
“This initiative is aiming to ease business process and aiding local companies to expand business as much as a company can,” said Debashish Sarkar, Deputy General Manager of the FEPD of the central bank.
“But, it is subject to having sufficient balance in the Foreign Currency (FC) account of the respective company or its parent, or sister concern or a subsidiary,” he added.
He added the initiative will reduce hassle to get urgent financing from a bank or a financial institution or AD of an international lender.
Earlier, local companies had to obtain prior approval from the central bank in such cases, which involved time and hassle.
This unique facility was open only for companies having fully foreign investment and joint ventures with local investors in EPZs and EZs, he said.
He said the latest initiative of the central bank will increase competitiveness of the local investors, who run an export-oriented company in the EPZs or EZs.
In the circular, the central bank said other terms and conditions to get this facility will followed the guidelines on foreign currency transactions.
Local companies have been contributing a lot to the country’s overall export basket.
In case of borrowing from foreign financial institutions, the ADs are asked to hold collateral against the loan amount from the borrowers. This directive will be effective for all the ‘A’, ‘B’ and ‘C’ type companies.
