Dhaka, Bangladesh (BBN)– The central bank of Bangladesh has relaxed regulations allowing foreign controlled firms to avail interest-bearing loans as working capital from their parent companies abroad.
The interest rate on three-month term deposit will be applicable as interest rate on such short-term foreign currency loan, according to a notification issued by the Bangladesh Bank (BB) on Thursday.
Talking to the BBN, a senior official of the Bangladesh Bank (BB) said the central bank has relaxed our regulations aiming to increase the inflow of foreign direct investment in Bangladesh through facilitating foreign-owned companies.
The foreign companies are allowed to enjoy such loan facility only for three years after staring their productions in Bangladesh, he added.
Earlier, foreign firms were restricted to pay interest on their borrowing from their parent companies abroad.