Regulatory Alerts2023-07-16
Added
Bangladesh Bank - Long Term Financing Facility (BB-LTFF) Operating Guidelines
The document establishes operating guidelines for the Bangladesh Bank - Long Term Financing Facility (BB-LTFF), authorizing Participating Financial Institutions (PFIs) to provide long-term foreign currency financing to private sector manufacturing firms. Eligible PFIs must meet specific criteria, including a minimum CAMELS rating of 3, non-performing loan levels no higher than 8%, and three years of unqualified audit records. Individual borrowers are subject to a maximum threshold of USD 5 million per PFI or USD 10 million under syndicated financing, with funds restricted to capital machinery, factory expansion, and transport vehicles. The facility mandates strict adherence to Environmental and Social Risk Management frameworks, prohibits refinancing for loans disbursed before January 1, 2021, and requires final approval from the Deputy Governor of Bangladesh Bank for each case.