Regulatory Alerts2021-02-24
Added
Financing facilities from stimulus packages to industries operating in EPZs/EZs/HTPs
Type A and Type B industries operating in Export Processing Zones (EPZs), Export Zones (EZs), and High Technology Parks (HTPs) are permitted to access Taka financing from stimulus packages. Type C industries in these zones are eligible for such Taka financing on terms admissible to similar industries outside the zones. This clarification establishes that relevant BRPD circular letters were issued under Section 18(2) of the Foreign Exchange Regulation Act, 1947.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular Letter No. 02 Date: 24 February, 2021 Head offices/Principal offices of all Authorized Dealers in Bangladesh Dear Sirs, Financing facilities from stimulus packages to industries operating in EPZs/EZs/HTPs. Please refer to paragraph 20, chapter 16 of the Guidelines for Foreign Exchange Transactions (GFET), 2018, Volume-1 in terms of which Authorized Dealers (ADs) are permitted to extend loan facilities to Type-C industries of EPZs in Taka as admissible to such industries outside EPZs. Such facilities are available for Type C industries operating in EZs and HTPs as per relevant provisions of chapter 20 ibid and FE Circular No. 21 of May 16, 2019. ADs can also grant Taka loans to Type B industries operating in above mentioned zones in terms of paragraph 18, chapter 16 of GFET and relevant other instructions. Type A industries can avail foreign currency loans from admissible sources as per paragraph 7, chapter 15; paragraph 17(A), chapter 16 of GFET and other relevant instructions. 02. Industries operating in different zones are eligible to access to finance in Taka from stimulus packages as per BRPD Circular Letter No. 50 of October 01, 2020 and 53 of October 29, 2020. This is to clarify that these circular letters shall be considered to have been issued in terms of Section 18(2) of the The Foreign Exchange Regulation Act, 1947 (amended up to 2015). Hence, Type A and Type B industries operating in different zones may access to finance in Taka from concerned stimulus packages. Likewise, Type C industries will be eligible for financing in Taka from stimulus packages as admissible to such industries outside zone areas. Other relevant instructions in this regards contained in GFET, its subsequent circulars and circular letters shall remain unchanged. Please bring the contents of this circular letter to the notice of your concerned clientele. Yours faithfully, (Md. Ali Akbar Faraji) General Manager Phone: 9530123