BRPD Circular Letter No. 54: L/C Margin on Import Financing

Bangladesh Bank Chief Executive Motijheel, Dhaka-1000 Bangladesh. Ref: BRPD Circular Letter No. 54 Date: -------------------- 07 Poush 1429

Managing Director/Chief Executive Officer All Scheduled Banks Operating in Bangladesh

Dear Sir,

Regarding Cash Margin Retention for Establishment of Letter of Credit for Import Financing.

Reference is drawn to your attention to BRPD Circular Letter No. 25 dated: 04 July 2022 on the subject cited above.

2. Through the aforementioned Circular Letter, instructions were given to retain 100 percent and 75 percent cash margin for the establishment of Letter of Credit for the import of certain products.

3. Now, in order to maintain the normal supply of lubricants in the market for the operation of industrial factories, keeping industrial activities active, and maintaining the production of power plants, the rate of cash margin retention will be determined on the basis of bank-customer relationship for the establishment of Letter of Credit for the import of engine oil/lubricants and products related to their production/preparation.

4. In addition, other instructions of BRPD Circular Letter No. 25/2022 will remain unchanged.

5. These instructions are issued under the powers conferred by Section 45 of the Bank Company Act, 1991.

These instructions will be effective immediately.

Yours faithfully,

(Md. Ali Akbar Farazi) Director (BRPD) Phone: 9530095