From now on, approval of Bangladesh Bank is not required for guarantee of buyer’s credit. Bangladesh Bank issued a circular on Wednesday (13 July) announcing the decision. Bangladesh Bank thinks that this will make import financing easy and affordable.
Borrowers have to give a guarantee to take a loan from a foreign company under the buyer’s credit. Foreign companies take corporate guarantees, personal guarantees, and third-party guarantees from importers.
Until now, it was mandatory to get approval from Bangladesh Bank for giving such a guarantee. From now on this approval will not be required. Importers say it has made business easier. It took time to take this guarantee. The complication of the matter has been reduced.
A circular was issued by the Foreign Exchange Policy Department of Bangladesh Bank to the authorised dealer banks engaged in foreign exchange transactions. According to the circular, the facility has been provided to expedite short-term import financing under buyer’s credit.
