Dhaka, Bangladesh (BBN)- The central bank of Bangladesh has relaxed regulations for consumer financing by the banks, allowing them to finance in reconditioned cars, imported in line with the existing import policy.
Under the relaxations, the commercial banks are allowed to finance the cars, imported as described in the existing import policy order, instead of older than five years.
''The banks keen in financing purchase of used cars will prepare uniform guidelines for determining value of the used vehicles. However, the banks will only finance the vehicles, imported as described in the existing import policy order," the central bank said in a circular on Monday.
"The central bank has relaxed the prudential regulations for consumer financing in line with the recommendations of the importers of reconditioned vehicles and banks," a senior official of the Bangladesh Bank (BB) said.
The importers of reconditioned vehicles welcomed the BB's latest move, saying that it would help expedite sale of reconditioned cars. Besides, the customers will be benefited.
"There will be no bar after relaxation of the rules to finance auto cars which have been imported in line with the existing import policy order," a senior member of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) said, adding that around 90 per cent of the reconditioned cars are sold under bank loans.
BBN/SI/AD-21Dec10-10:12 am (BST)