Bangladesh Bank increases working capital credit limit

Bangladesh Bank (BB) on Wednesday increased the working capital credit limit for maintaining the productivity and momentum of the country's overall economic activities, including imports and exports.

For maintaining productivity and momentum of the overall economic activities, the central bank instructed banks to increase the already sanctioned working capital loan limit, said a BB circular issued today, reports BSS.

If necessary, banks will increase the limit based on banker and customer relations by reducing risk.

In the recent global economic context, the cost of production is increasing due to increase in prices of various commodities, including raw materials, and an increase in transportation costs in the international market.

As a result, in spite of maximum utilization of the working capital credit limit already sanctioned by the scheduled banks in favour of the borrowers, it is not possible to complete the production activities, including payment for required raw materials as per the demand, which is hampering the production process.