Regulatory Alerts2026-07-15
Added · Updated
General Permission for External Borrowing by Fully Foreign-Owned Industrial Enterprises
Bangladesh Bank grants general permission for fully foreign-owned industrial enterprises to access external borrowing from parent companies, associates, or shareholders without prior approval, subject to specific stipulations. Short-term borrowing allows interest-free loans for working capital and cost-bearing loans capped at 3% annual interest with a maximum three-year aggregate tenor. Medium-term loans for capital expenditure are permitted up to USD 50 million interest-free or USD 5 million at 3% interest, while long-term borrowing exceeds five years with no bullet repayment allowed. Authorized Dealers must report transactions post facto within one week for short-term and 14 days for disbursements, ensuring compliance with an 80:20 debt-equity ratio for cost-bearing loans.