Bangladesh Bank has allowed foreign currency (FC) accounts to be opened and operated in the name of eligible private industrial enterprises to hold the proceeds of medium and long-term foreign loans in foreign currency.
The central bank issued a circular on the matter on Wednesday.
According to the circular, private industrial enterprises may take medium and long-term foreign financing subject to the approval of the relevant authority: as applicable, the scrutiny committee on foreign loans and suppliers’ credit of the Invest Bangladesh Authority, Bangladesh Bank, or the Standing Committee on Non-Concessional Loans.
Designated authorised dealer banks may open FC accounts in the name of eligible borrowers to hold the approved foreign loan in foreign currency and use it in line with the approval of the loan and the terms of the agreement with the foreign lender.
The circular also says foreign currency held in such accounts may be used to pay for imports, following the import policy order and foreign exchange regulations in force, and to pay for actual services needed for work being carried out under the approved loan.
For approved local purchases or procurement, foreign currency in the FC account may be converted into taka. Interest or profit may also be earned on the balance of these accounts under the applicable terms of the banker-customer relationship.
Foreign currency may also be held for repaying instalments of the foreign loan. If the loan agreement requires money to be held for repayment, the FC account may be kept open until the loan matures, but the balance may not exceed the amount needed to pay the next three instalments.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report