Staff Reporter :
Bangladesh Bank (BB) has relaxed lending regulations for foreign-owned companies operating in the country for at least three years, in a move aimed at enhancing their access to long-term financing from the domestic banking system.
According to a circular issued on Wednesday, local banks are now permitted to finance up to 60% of a project’s cost in local currency for eligible foreign firms, while the remaining 40% must be met through equity contribution by the company. Previously, the maximum allowable debt-equity ratio stood at 50:50.
The revised policy applies to foreign entities engaged in manufacturing or service sectors that have maintained operations in Bangladesh for three years or more. These companies will now be eligible to secure local bank loans for activities such as capacity enhancement or BMRE (Balancing, Modernisation, Rehabilitation, and Expansion).
However, the central bank clarified that such lending will remain subject to existing credit norms and regulatory safeguards, including the single borrower exposure limit and the newly adjusted debt-equity ratio.
The move is expected to boost investment by facilitating smoother access to domestic financing for foreign companies already contributing to the country’s industrial and service landscape.
