Bangladesh Bank has eased rules on foreign payments for industrial enterprises operating in hi-tech parks (HTPs). Such enterprises can now send money abroad from their taka accounts for royalty, technical knowledge and technical assistance fees, within set limits.
Bangladesh Bank issued a circular on the matter Thursday.
Under the circular, banks can arrange foreign remittances for royalty, technical knowledge and technical assistance fee payments within set limits without prior approval from Bangladesh Bank or the Bangladesh Hi-Tech Park Authority (BHTPA).
Alongside sending money from taka accounts, enterprises may also continue to use previously approved foreign currency accounts for this purpose. However, before remitting funds, banks must confirm that the relevant industrial enterprise has no foreign currency earnings.
Bangladesh Bank said the decision was made to simplify the foreign payment obligations of hi-tech park enterprises.
However, sending royalty, technical knowledge or technical assistance fees abroad beyond the set limit will still require prior approval from BHTPA. Sending money abroad for other necessary expenses will also require specific BHTPA approval, regardless of the amount.
Under the new arrangement, hi-tech park enterprises will have greater ease and flexibility than before in paying for foreign contracts and operational expenses.