Bangladesh Bank (BB) has allowed the enterprises owned or operated by foreign companies, working in the country, for availing term loan facilities from local financial institutions.

Jagannath Chandra Ghosh, deputy general manager of Foreign Exchange Policy Department of the central

bank yesterday issued a circular to all the commercial banks and non-bank financial institutions in this regard.

The BB circular instructed that foreign owned and controlled companies engaged in manufacturing or services

output activities at least for the three years in Bangladesh can have access to term loans from the domestic market.

The equity of the foreign company will be considered as the pre requisition for availing the loan facilities from

the market. Meanwhile, the circular also directed financial institutions to follow the credit norms and prudential parameters including single borrower exposure limit, debt-equity ratio etc.