Issuance of Bank Guarantee/Standby Letter of Credit on behalf of importer in favor of foreign suppliers

Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Dhaka www.bb.org.bd
FE Circular No.02 Date: January 08, 2025
All Authorized Dealers of
Foreign Exchange in Bangladesh
Dear Sirs,
Issuance of Bank Guarantee/Standby Letter of Credit on behalf of importer in favor of foreign suppliers Please refer to paragraph 8, chapter 16 of the Guidelines for Foreign Exchange Transactions-2018, Vol-1 (GFET) and subsequent circulars regarding issuance of guarantees on behalf of residents in favor of non-residents.
02. To facilitate import of emergency goods/services by the Government competent
authorities/entities under power and energy sector, it has been decided that Authorized Dealers (ADs) may furnish bank guarantee/Standby Letter of Credit in favor of foreign suppliers as payment security on behalf of importers subject to approval of concerned ministry. While issuing guarantees/Standby Letters of Credit, ADs shall ensure that the underlying import transaction will be excuted under sales￾purchase contracts.
03. All other relevant instructions on import trade shall remain unchanged. You are advised to
bring the contents of this circular to the notice of your concerned constituents. Yours faithfully,

(Md. Harun-Ar-Rashid)
Director (FEPD)
Phone: 9530123