BB Enhances Working Capital Loans Limit for Export-Import Trading

Bangladesh Bank has instructed the scheduled banks to raise the working capital limit to a logical level for an interim period for the smooth running of export-import trading, reports UNB.

The central bank instruction said the working capital loans would be increased to a logical level despite having crossed the regular limit by the entrepreneurs. Based on the relationship between banks and customers and measuring risk factors, the bank can increase the working capital loans limit for the clients.  

“As the global supply chain was disrupted due to the Covid-19 pandemic, shipment and payment were also delayed. But now the situation is improving, however, due to the lack of capital, some entrepreneurs are struggling to operate factories,” the central bank order said.

In this context, considering the overall economic activities of the country, including the continuation of production activities and import-export, the BB has decided to enhance the limit of working capital loans.

In terms of the interim period, the relationship between banker-customer eliminates credit risk and customer's financial viability, banks are instructed to increase the verification level, it said.