The opportunity for opening letter of credits (LCs) for the businessmen of both Bangladesh and Myanmar has ushered in a new chapter in strengthening of trade relations between the two neighbouring countries, experts said.

Although businesses had been taking place between the two countries since long through General Trade Agreement and Border Trade Agreement, signed in 1973 and 1994 respectively, traders had to face severe troubles as there was no scope of opening LCs.

The hurdle has been removed after a long effort through an initiative of Sonali Bank.

While talking to the daily sun, Md Humayun Kabir, managing director of Sonali Bank, said it was a great success of Sonali Bank for being able to remove the long-standing hurdle that will act as the opening of the doors of new possibilities for a stronger trade ties between the two nations.

He also hoped that through this initiative, new avenues of opportunities would be opened for the traders and more banks would be able to go for providing the same facility.

The border trade agreement between Bangladesh and Myanmar was signed on May 18, 1994 and to run banking activities under the deal, another agreement was signed between Sonali Bank and Myanmar Investment and Commercial Bank on May 7 in 1995.

A total of 16,698 import drafts worth $ 115,045,780 and 1648 export drafts of $ 9,064,131 were issued between the two countries during September 1995-2011 to September 2011 period.

Banking sources said such huge volume of trade activities is not possible through bank draft only.

Businessmen of both countries have already started export-import activities through LCs.

Bangladeshi traders have been advised to open LCs at Sonali Bank’s Dilkusha Corporate Branch in Dhaka, Agabad Corporate Barnch in Chittagong and Khulna Corporate Branch in Khulna.

The Myanmar Investment and Commercial Bank has already opened two LCs for importing medicine from Bangladesh.

The Daily Sun/Bangladesh/ 23th Jan 2012