BRPD Circular Letter No. 01: Maintenance of general provision against the liabilities of LC(s) issued in favor of fast track power plant projects

BRPD Circular Letter No. 01
Banking Regulation and Policy Department
Bangladesh Bank
Head Office
Dhaka.
03 January, 2018
BRPD Circular Letter No.-01 Date: -------------------- 20 Poush, 1424 Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh. Regarding the maintenance of general provision against the liabilities of LC(s) issued in favor of fast track power plant projects.

Dear Sir,

We draw your attention to BRPD Circular No.-14 dated September 23, 2012, regarding Loan Classification and Provisioning.

2. Paragraph 4(d)(5) of the aforementioned circular instructs banks to maintain a 1% general provision against off-balance sheet exposures. Now, in order to ensure uninterrupted supply of electricity and fuel according to the needs of the country's high economic growth, agriculture, industry, commerce, and households, and considering the government's priority sectors, an exemption from the obligation to maintain a 1% general provision against the liabilities of LCs issued in favor of Fast Track Power Plant projects that have already received Board of Directors (BoD) approval from the Bangladesh Power Development Board (BPDB), and LCs that will receive BoD approval by September 30, 2018, is hereby granted. This exemption will also apply in the case of provision calculation based on December 31, 2017.

3. This instruction is issued under the powers vested in Section 45 of the Bank Company Act, 1991 (amended up to 2013) and will come into force immediately.

Yours faithfully,

(Abu Farah Md. Naser)
General Manager
Phone No.: 9530252