Regulatory Alerts2021-06-30
Added
Extension of Access to Domestic Finance Against Overseas Guarantees Until December 31, 2021
The applicability of instructions allowing resident companies to access Taka finance from banks and NBFIs against overseas guarantees is extended until December 31, 2021. Authorized Dealers must submit an intimation of such financing to the Foreign Exchange Policy Department at Bangladesh Bank head office within one week of sanctioning. All other relevant instructions regarding this facility remain unchanged.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd Circular Letter No.-17 Date: June 30, 2021 Head Office/Principal Offices of all Authorized Dealers in Bangladesh Dear Sirs, Access to finance from domestic sources against overseas guarantees Please refer to FEPD Circular Letter No. 26, Dated July 21, 2020 regarding Taka finance by banks/NBFIs against overseas guarantees (preferable bank guarantee/standby letters of credit) to resident companies irrespective of ownership/controlling status of borrowing entities. Given the ongoing situation due to covid-19 pandemic, it has now been decided to extend the applicability of the instructions in the abovementioned circular letter till December 31, 2021. Henceforth, an intimation of such financing has to be served to FEPD, Bangladesh Bank head office within 01(one) week of sanctioning. Other relevant instructions in this regard shall remain unchanged. Please bring the above instructions to the notice of your concerned clientele. Yours Faithfully, (Md. Shahidul Islam) General Manager (C.C.) Phone: 9530123