Foreign Loan Of Over 1yr
BoI nod must for capital machinery import: BB
The businesspeople will have to take prior approval from Board of Investment to import capital machinery by receiving foreign credit with tenure of more than one year, said officials of Bangladesh Bank. The BB will issue a circular to authorised dealer branches of all banks in one or two days in this regard in a bid to check the misuse of foreign credit, better known as buyers’ credit, in the name of importing the capital machinery, they told New Age on Monday.
Some importers have recently received significant amount of foreign credit to import the capital machinery, but they have diverted the loan to another sector by avoiding the import, said an official.
‘The importers usually obtain large amount of loan from foreign sources to import the capital machinery than that of commodity products and industrial raw materials. But, some businesspeople do not import the capital machinery despite taking the foreign loan,’ he said.
Besides, they very often do not repay the loan in due time which tarnish the country’s image to abroad, the official said.
For this reason, the central bank is going to take strict measure to bring discipline in this connection, the official said.
The new measure will tackle the misuse of foreign credit as the importers will have to repay the loan in due time in line with their commitment to the Board of Investment, he said.
The businesspeople usually import the capital machinery through deferred LC, suppliers’ credit and buyers’ credit.
-With New Age input
