BB relaxes loan policy for foreign-owned companies

The Bangladesh Bank (BB) has relaxed regulations for foreign-owned companies operating in Bangladesh to get short-term working capital loans from their parent companies or shareholders abroad.

“Given the prevailing COVID-19 pandemic related disruptions, it has been decided that foreign-owned or controlled companies operating in Bangladesh irrespective of sectors may access short-term working capital loans, for the tenure of one year extendable to another one year, from their parent companies or shareholders abroad,” reports BSS quoting a BB circular.

The foreign-owned or controlled companies can take the loan to meet actual needs for payments of three-month wages and salary to staff regardless of their length of engagement in manufacturing or services output activities.

Other relevant instructions regarding the transactions shall remain unchanged, the circular added.