Regulatory Alerts2025-10-07
Added
FEPD Circular No. 39: Export under open account credit terms backed by payment undertaking or payment risk coverage from local insurance companies
Authorized Dealers in Foreign Exchange in Bangladesh may arrange payment undertaking or payment risk coverage from insurance companies operating in Bangladesh for exports under open account credit terms. Insurance policies must be issued in foreign currency, with premiums payable from exporters' ERQ accounts, and claims realized in foreign currency upon default. Insurance companies must obtain appropriate reinsurance coverage from external sources and may maintain foreign currency parking accounts to handle premiums, reinsurance remittances, claim settlements, and payments to Authorized Dealers. Based on this coverage, Authorized Dealers may extend early payment facilities to exporters.
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