Bangladesh Bank eases forex rules for ship leasing by local firms
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The central bank has allowed authorized dealer (AD) banks to facilitate outward remittances for lease rentals of ships and vessels by shipping companies incorporated in Bangladesh, aiming to strengthen the maritime sector.
The banks may execute such remittances in accordance with the existing foreign exchange regulations governing payments for aircraft leases, according to a notification issued by the Bangladesh Bank (BB) on Thursday.
Officials at the central bank, however, said the policy is intended to support the development of ocean-going shipping capacity under Bangladeshi ownership.
Earlier, the facility was limited to aircraft leasing by local companies.
Under the notification, AD banks have now been instructed to ensure that applicant companies comply with specific conditions.
Firstly, the shipping company must obtain necessary permission or approval from the competent authority for the operation of leased ships or vessels.
Secondly, the company must be compliant with regulatory requirements, including regular submission of returns to the central bank and repatriation of surplus earnings
The central bank is working continuously to align foreign exchange regulations with sectoral development goals and promote sustainable growth in key industries, the officials explained.