Foreign firms, JVs in economic zones can borrow from local banks
Says BB
Foreign firms and joint ventures located in the economic zones can access working capital loans in the taka from the domestic banking system for their operations catering to the local market, said the Bangladesh Bank yesterday.
Industrial enterprises operating in the domestic processing areas of the economic zones do not have sources of income in foreign currencies.
In order to facilitate their businesses, the central bank issued a circular in October 2020, allowing the enterprises to execute transactions in the taka without export/import procedures and remit the payment on account of royalty, technical know-how and technical assistance fees from their taka accounts.
To further meet their working capital needs, it has been decided that Type A and Type B industrial enterprises operating for marketing their products in the domestic market only and with no sources of income in foreign currencies are allowed to access working capital loans in the taka from the local banking system, said the BB.
Firms with 100 per cent foreign ownership are considered "Type A" and joint venture companies with foreign and Bangladeshi ownership are treated as "Type B".