FE Circular No. 02: Short term foreign currency borrowing by Type A industries in EPZs/EZs

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No.02 Date: January 22, 2017 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Short term foreign currency borrowing by Type A industries in Export Processing Zones (EPZs)/Economic Zones (EZs) Attention of Authorized Dealers is invited to paragraph 17(A), chapter 16 of the Guidelines for Foreign Exchange Transactions-2009 (GFET), Vol.-1 in terms of which Type A industries in EPZs are allowed to obtain short term foreign currency loans from overseas banks and financial institutions subject to observance of the stipulated instructions. 02. In order to ease short term borrowing by Type A industries in EPZs/EZs, it has been decided that they may access short term foreign currency loans from parent companies/shareholders abroad and other Type A subsidiaries/associates operating in EPZs/EZs. In the context of such short term loans within subsidiaries/associates operating in EPZs/EZs, ADs shall, before transferring the fund, satisfy themselves that the fund is unencumbered. Please bring the above instructions to the notice of all concerned constituents. Yours faithfully, (Jagannath Chandra Ghosh) Deputy General Manager Phone: 9530092