Three state-run commercial banks opened letters of credit worth US$336 million for Bangladesh Petroleum Corporation for importing fuel oils as of January 22 this year, officials said yesterday.

A senior official of the central bank also said no banks have expressed unwillingness to open LCs for BPC, contradicting media reports.

Sonali Bank opened LCs worth $147 million for importing diesel, Janata Bank $113 million for crude, jet and furnace oil and Agrani Bank $76 million for diesel in the first three weeks of 2012.

The development will help the BPC breathe a sigh of relief as the state-run lone petroleum products importer has been desperately searching for funds to feed the country's appetite for fuel.

The official said Bangladesh Bank initiated the move to help cash-strapped BPC receive costlier American greenback to import petroleum products.

The central bank also assured the banks that they will be provided with required local currency in case of any liquidity crunch, he added.

This comes amid reports that the three state-run banks are refusing to open L/Cs for BPC as they face a serious dearth of liquidity both in dollars and taka.

The Daily Star/Bangladesh/ 23th Jan 2012