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Bangladesh Bank (BB) has increased the borrowing limit for foreign firms operating in Bangladesh from local banks, further simplifying their access to term loans from the domestic market.
The foreign companies operating here for a minimum of three years can now borrow up to 60 per cent of the project cost, up from existing 50 per cent, according to a circular issued on Wednesday.
The companies must provide the remaining 40 per cent as equity, which was 50 per cent earlier.
The BB said foreign companies engaged in manufacturing or services for three years or longer are allowed to borrow from local banks and financial institutions for capacity expansion or BMRE (balancing, modernisation, rehabilitation and expansion).
These borrowings are subject to applicable credit norms and prudential parameters, including the single borrower exposure limit and debt-equity ratio not exceeding 50:50, according to
the circular.
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