Nizam Chowdhury, ChairmanBangladesh Bank has allowed the foreign companies to get short term external borrowing from their organisations as per foreign exchange transactions guidelines.
“Foreign industrial enterprises may now access interest-free loans from parent companies abroad for up to one year without any prior approval, subject to post factor reporting through their Authorized Dealers banks to Foreign Exchange Policy Department of Bangladesh within one week of availing each such loan,” said a Bangladesh Bank circular issued yesterday.
The circular reads, “Foreign companies in Bangladesh has faced difficulties while arise urgent necessity of short term borrowing for business needs as working capital from the local market has not yet been lined up. To help enterprises get around such difficulties Bangladesh Bank took the decision.”
Repayment of these loans will require no prior approval, but will have to be reported to the Foreign Exchange Policy Department of Bangladesh Bank through Authorized Dealers banks, according to the circular.
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