Dhaka, Bangladesh (BBN)– Bangladesh’s commercial banks are now allowed to hold collaterals on behalf of the non-resident lenders against external loans, availed by the state agencies, without prior approval from Bangladesh Bank (BB).
The central bank of Bangladesh has taken the measures aiming to facilitate such transactions, a BB senior official explained.
He also said it will be applicable, if the foreign lenders seek collaterals against their loans, approved by Standing Committee on Non-Concessional Loan of Economic Relations Division (ERD).
The central bank of Bangladesh issued a circular in this connection on Monday, and asked the officials concerned of all authorized dealer (AD) banks to properly follow the instructions on holding collaterals on behalf of the non-resident lenders.
The BB also issued another notification on the same day, allowing the banks to repay interest, service charges and instalments against overseas borrowing without prior approval from the central bank.