Foreign firms, JVs in EZs get permission to take loans in taka
Bangladesh Bank (BB) has allowed foreign firms and joint ventures (JVs) located in the economic zones (EZs) to take working capital loans in taka from the domestic banking system for their operations catering for the local market. “Industrial enterprises operating in the domestic processing areas of the economic zones do not have sources of income in foreign currencies. To facilitate the business, the central bank issued a circular in October 2020, allowing them to execute transactions in the taka without export/import procedures and remit the payment on account of royalty, technical know-how and technical assistance fees from their taka accounts respectively,” as per a BB circular issued on Monday. To further meet their working capital needs, it has been decided that Type A and Type B industrial enterprises operating for marketing their products in the domestic market only and with no sources of income in foreign currencies are allowed to access working capital loans in the taka from the local banking system, reports BSS citing the circular. Firms with 100 per cent foreign ownership are considered ‘Type A’ and joint venture companies with foreign and Bangladeshi ownership are treated as ‘Type B’.
No liquidity crisis in banks: BAB
Bangladesh Association of Banks (BAB), an organisation of entrepreneurs and directors of private banks, in a statement has said that there is no liquidity crisis in the banks at present. In a statement issued on Monday, BAB said that there is a negative campaign going on over the liquidity crunch in the banking sector. But this is not true; liquidity in the banks is stable, it said. Chairman of BAB and Exim Bank, Nazrul Islam Majumder, signed the notification, reports UNB. There is a liquidity of Tk 1.70 trillion remaining in the banking sector at present, which is more than the requirement, he said. BAB issued the statement after discussing the current situation of the banking sector in a meeting.
Cabinet directs to verify news, information being shared about banking sector
The Cabinet on Monday directed the authorities concerned to verify the accuracy of the videos and news seen on social media and newspapers about the current situation in the banking sector. The direction came at the Cabinet meeting with Prime Minister Sheikh Hasina in the chair at the PMO, said Cabinet Secretary Khandker Anwarul Islam, while briefing the media at the Secretariat. The cabinet secretary said different types of videos are being viewed on social media about the current situation of the banking sector. “An explanation has been sought from the authorities concerned to verify the accuracy of these videos”, he added. Meanwhile, after the secretaries’ meeting on Sunday, the cabinet secretary told reporters that there was an indirect discussion about this and instructions were given to the banking and finance division to expose the real scenario.
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