FEPD Circular No. 33: Working capital loans to industrial enterprises operating in Domestic Processing Areas(DPAs) of Economic Zones(EZs)

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 33 Date: November 28, 2022 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Working capital loans to industrial enterprises operating in Domestic Processing Areas(DPAs) of Economic Zones(EZs). Please refer to paragraph 8, chapter 20 of the Guidelines for Foreign Exchange Transactions-2018 (GFET), Vol-1 in conjunction with paragraph 17, chapter 16 of GFET in terms of which Type A and Type B industrial enterprises operating in Economic Zones (EZs) can access to short term foreign currency loans from eligible sources. Industrial enterprises operating in Domestic Processing Areas (DPAs) of EZs do not have sources of income in foreign currency. To facilitate the business, FE Circular No. 13 of June 05, 2018 and FE Circular No. 41, of October 04, 2020 have been issued, where they are allowed to execute transactions in Taka without EXP/IMP procedures and are permitted to remit payment on account of royalty, technical know-how and technical assistance fees from their Taka accounts respectively. 02. To further facilitate meeting working capital needs, it has been decided that Type A and Type B industrial enterprises of EZs operating for marketing their products for domestic market only, having no sources of income in foreign currency, are allowed to access to working capital loans in Taka from domestic banking system in terms of paragraph 4(B), chapter 16 of GFET, subject to observance of all applicable credit norms and prudential parameters. Please bring the contents of this circular to the notice of all your concerned clientele.

Yours faithfully,

(Md. Sarwar Hossain) Director (FEPD) Phone: 9530123