Bangladesh Bank has allowed eligible private sector industrial enterprises to retain approved medium- and long-term foreign loan proceeds in foreign currency (FC) accounts, enabling smoother international settlements for imports, service fees, and debt servicing.
Under the new circular issued by the central bank on Wednesday (October 7, 2026), Authorised Dealer (AD) banks are permitted to open FC accounts in the name of eligible borrowers, subject to approval from relevant authorities—including the Invest Bangladesh Authority (IBA) Foreign Loan/Suppliers' Credit Scrutiny Committee, Bangladesh Bank, and the Standing Committee on Non-Concessional Borrowing. The retained foreign currency can be utilized in compliance with the prevailing Import Policy Order to settle import bills, pay for verified offshore execution services, and fund authorized local procurements by converting FC into BDT. Furthermore, borrowers are permitted to hold foreign exchange up to the amount required for their next three debt-servicing installments, with balances eligible to earn interest based on banker-customer agreements. Private industry leaders have welcomed the move, noting that operational flexibility and liquidity management for foreign commercial debt will improve significantly.
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Reported by Staff Reporter • Edited by the Daily Best News desk. Send corrections to [email protected].
