FE Circular No. 33: Issuance of bank guarantees against import under buyer's credit

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 33 Date : 20 August 2017 All Authorized Dealers of Foreign Exchange in Bangladesh Dear Sirs,

Issuance of bank guarantees against import under buyer’s credit FE Circular No. 02, dated February 06, 2012 permits short term buyer’s credit from foreign banks and financial institutions for imports of goods eligible as per paragraph 33(a), chapter 7 of the Guidelines for Foreign Exchange Transactions- 2009, Vol-1. To facilitate short term import finance, it has been decided that Authorized Dealers (ADs) may, on behalf of industrial importers, issue repayment bank guarantees without Bangladesh Bank approval favouring International Islamic Trade Finance Corporation extending short term buyer’s credit up to 180 days for import of industrial raw materials for own use by importers, on sight basis, subject to adherence to all applicable credit norms and prudential parameters including single borrower exposure limit. In case of invocation of the guarantees, ADs shall report Bangladesh Bank giving full details of the circumstances leading to invocation and copy of bill of entry relevant to the concerned imports. Please bring the contents of this circular to the notice of all your concerned constituents. Yours faithfully, (Md. Abdul Mannan) Deputy General Manager Phone:9530319