BRPD Circular No. 07: Enhancement of Working Capital Limit

Department of Banking Regulation and Policy
Bangladesh Bank
Head Office
Dhaka. binongor:b: ii.inn.org.bd
BRPD Circular No. 07 27 April 2022
Date: -------------------
14 Baisakh 1429
Managing Director/Chief Executive
All Scheduled Banks operating in Bangladesh.
Dear Sir/Madam,
Subject: Enhancement of Working Capital Limit.
In the recent global economic context, due to the increase in the price of raw materials and various other inputs in the international market, along with increased transportation costs, production costs are rising. Consequently, despite the maximum utilization of working capital loan limits already sanctioned by scheduled banks in favor of borrowers, it is not possible to complete production activities, including payment for necessary raw materials as per demand, which is hindering the production process. As a result, there is a risk of disruption to the dynamism of ongoing economic activities, including import-export.
2. In the described context, in the interest of keeping production activities ongoing and maintaining the dynamism of the country's overall economic activities, including import-export, you are hereby instructed to increase the working capital loan limits already sanctioned by banks in favor of borrowers to a reasonable level for an interim period, based on the banker-customer relationship, by mitigating/reducing credit risk and verifying the customer's financial capacity.
3. This instruction is issued under the powers conferred by Section 45 of the Bank Company Act, 1991.
This instruction will be effective immediately.
Yours faithfully,
(Maksuda Begum)
General Manager
Phone-9530252