Dhaka, Bangladesh (BBN) – The Bangladesh government has relaxed regulations, allowing foreigners to invest in its treasury bonds by using Non-Resident Investor’s Taka Account (NITA), officials said on Tuesday.
Under the relaxations, the purchase is made with funds of a Non-Resident Foreign Currency Account (NFCA) or a NITA with a bank in Bangladesh in the name of the purchaser, according to a notification, issued by the Ministry of Finance (MoF).
“We’ve allowed NITA to purchase the Bangladesh Government Treasury Bonds (BGTBs) to encourage foreign investors to invest in the securities,” a senior government official told BBN in Dhaka.
He also said the government has relaxed the regulations in line with the foreign investors’ desire.
The MoF has allowed foreign nationals to invest in the treasury bonds using NITA after withdrawal of the one-year lock-in period.
On April 11 last year, the government withdrew the lock-in provision on all bonds for both non-resident Bangladeshis (NRBs) and foreign nationals to bring dynamism into the secondary securities market.
Currently, five government treasury bonds, with duration of two, five, ten, fifteen and twenty years, are being traded in the market.
BBN/SSR/AD-08Apr14-11:55 pm (BST)
