Regulatory Alerts2025-09-02
Added
FEPD Circular No. 34: Foreign exchange regulations regarding loans, overdrafts, guarantees, and external borrowings
This circular compiles and modifies existing foreign exchange regulations for loans, overdrafts, and guarantees, repealing corresponding instructions in the Guidelines for Foreign Exchange Transactions-2018, Vol.-1. It establishes specific rules for Authorized Dealers, including general authorization for Taka working capital loans to foreign-owned or controlled industrial and trading firms, subject to credit norms and a maximum debt-equity ratio of 60:40 for term lending. The document details conditions for granting credit to non-residents, issuing guarantees on behalf of residents, and facilitating borrowing abroad by private and public sector entities, with validity set for one year from issuance.
Topics
fx
credit
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