Foreign industrial enterprises operating in Bangladesh will not require taking prior approval from Bangladesh Bank to bring interest-free short-term loan with up to one year tenure from their parent companies and shareholders abroad, said the BB. To this end, the BB issued a circular to the authorised dealers of all banks on Wednesday saying that the enterprises had faced crisis occasionally arising out of urgent need for short-term borrowing for business requirement other than inputs procurements.
A BB official told New Age on Thursday, ‘Foreign enterprises usually plunge into difficult situation to get an instant short-term
loan from the local market as they are yet to develop a good relation with the banks.’
Against the backdrop, the BB decided that the foreign industrial enterprises would get access interest-free loans from their parent companies and shareholders without any prior approval from the central bank, the BB circular said.
Repayment of these loans will likewise require no prior approval, but the foreign enterprises will have to report on loans and repayment to the foreign exchange policy department of the BB, it said.
-With New Age input
