Bangladesh Bank has granted Shinepukur Ceramics a special regulatory waiver to open letters of credit with a 100 per cent cash margin, allowing the listed company to import essential raw materials, keep production running and safeguard jobs.
The move marks the second such exemption in recent days after the central bank extended a similar facility to Abdul Monem Sugar Refinery Ltd, despite the high funding costs associated with a full cash-margin requirement.
The central bank exempted the manufacturer from restrictions under Section 27Ka (3) of the Bank Company Act, enabling it to open LCs through Sonali Bank PLC without creating additional banking liabilities.
According to a Bangladesh Bank circular issued on Tuesday, the regulatory relaxation will remain effective until December 31, 2027.
The directive, signed by Deputy Governor Dr Md Kabir Ahmed and circulated by Md Bayazid Sarker, Director of the Banking Regulation and Policy Department-2, was sent to the chief executives of all scheduled banks.
The central bank said the waiver had been granted on humanitarian and economic grounds to ensure uninterrupted industrial production and safeguard the employment of the company's large workforce.
Under the conditions attached to the approval, all export and sales proceeds of Shinepukur Ceramics must be deposited into a separate account maintained with Sonali Bank.
The state-owned lender will recover its dues through installment deductions from those proceeds.
Bangladesh Bank said the arrangement would not create any additional liabilities for the banking system, as imports would be financed entirely through a 100 per cent cash margin.
The decision comes despite an existing legal restriction under Section 27Ka (3) of the Bank Company Act, 1991, which bars banks from extending fresh credit facilities to companies belonging to business groups with defaulting entities.
Earlier, on July 7, the central bank instructed banks to maintain a 100 per cent cash margin for opening LCs for Abdul Monem Sugar Refinery Ltd under a similar special arrangement..
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