Regulatory Alerts2024-09-05
Added · Updated
BRPD Circular Letter No. 41: L/C Margin on Import Financing
The document mandates a 100% cash margin for the establishment of import letters of credit for specified luxury goods and domestically produced import substitutes, including motor cars, electronics, gold, jewelry, and tobacco. It explicitly repeals the directives contained in BRPD Circular Letters No. 25/2022, No. 54/2022, and No. 19/2023, while maintaining the validity of actions taken under those prior circulars before this issuance. For all other import goods not listed in the exemption, banks are instructed to determine cash margins based on banker-customer relationships to facilitate trade and ensure the supply of essential consumer goods. These instructions are effective immediately and are issued under the authority of Section 29 of the Bank Company Act, 1991.