FEPD Circular Letter No. 19: Working capital loans from abroad by foreign owned/controlled companies

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular Letter No. 19 Date: May 03, 2020 Head offices/principal offices of all Authorized Dealers in Bangladesh Dear Sirs, Working capital loans from abroad by foreign owned/controlled companies Please refer to FE Circular No 32, dated August 22, 2019 in terms of which borrowing of short term interest bearing loan by foreign owned/controlled companies is permissible from their parent companies/shareholders abroad. 02. Given the prevailing COVID-19 pandemic related disruptions, it has been decided that foreign owned/controlled companies operating in Bangladesh irrespective of sectors may access short term working capital loans, for the tenure of one year extendable to another one year, from their parent companies/shareholders abroad to meet actual needs for payments of 3-month wages and salary to staff regardless of their length of engagement in manufacturing or services output activities. The facility will not be applicable for those companies availing loans/advances from domestic banking system in terms of BRPD Circular No. 07 of April 02, 2020 and its subsequent circulars/circular letters. Other relevant instructions regarding the transactions shall remain unchanged. Please bring the contents of this circular letter, applicable till September 30, 2020, to the notice of your concerned clientele. Yours faithfully, (Mohammad Khurshid Wahab) General Manager Phone: 9530123