Bangladesh Bank has permitted the release of the remaining portion of an approved syndicated foreign-currency loan for power producer SS Power-1 Limited. The central bank has decided not to apply a specific provision of the Bank Company Act, 1991, in order to allow release of Rupali Bank PLC’s $3,197,561.28 share of the loan and the opening of letters of credit (LCs) in the company’s favor.
Bangladesh Bank’s Department of Banking Regulation and Policy-2 issued a notification on the matter Wednesday, August 19. A circular letter was also sent to the managing directors and chief executive officers of all scheduled banks in the country, instructing them to take the necessary steps on the matter.
Bangladesh Bank’s notification states that the remaining $3,197,561.28 of Rupali Bank PLC’s share of the previously approved syndicated foreign-currency loan for SS Power-1 Limited may now be released. The provisions of Section 27Kaka(3) of the Bank Company Act, 1991, will also not apply to the opening of LCs in the company’s favor.
Bangladesh Bank, however, has attached an important condition to this permission. The central bank said no liability would arise for Bangladesh Bank in connection with this loan facility. Rupali Bank, it said, will not be able to claim any financial assistance from Bangladesh Bank in connection with this loan in the future.
Central bank officials said that, under this special provision, Rupali Bank will now be able to release the remaining funds of the previously approved syndicated loan for SS Power-1, while also creating an opportunity to open the necessary LCs.
The circular letter issued by Bangladesh Bank’s Department of Banking Regulation and Policy states that a copy of the August 19 notification has been sent to the managing directors and chief executive officers of all scheduled banks in the country for their information, with instructions to take the necessary steps.
The notification also cites Bangladesh Bank’s legal authority, stating that the decision was made under the powers granted by Section 121 of the Bank Company Act, 1991.
As a result of Bangladesh Bank’s decision, the path has been cleared to release the portion of Rupali Bank’s approved syndicated foreign-currency loan for SS Power-1 Limited that had not yet been disbursed. It has also created an opportunity to open the LCs needed for the company’s import activities.
The notification, however, makes clear that Bangladesh Bank will bear no financial liability in implementing this loan facility. As a result, the risk and liability associated with the loan will rest with the bank concerned.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report