EXTENDING FOREIGN LOAN TAKING PERIOD

BIDA nod must be taken 3 months before expiry

Staff Correspondent | Published: 00:13, Aug 17,2017

 
 

Businesspeople will have to take permission from the Bangladesh Investment Development Authority at least three months before the expiry of stipulated time for taking foreign loans if they want to extend the receiving period of the loans.
Bangladesh Bank on Wednesday issued a circular to authorised dealer branches and offshore banking units of all banks saying that the scrutiny committee of BIDA in its 16th meeting took the decision as the businesspeople earlier had not taken permission in such cases.
Access to medium and long term external loans by private sector industrial enterprises in Bangladesh, other than enterprises located in export processing zones and economic zones, are subject to specific approval by the BIDA based on the decision of its scrutiny committee, said the BB circular.
The external loans approved by the BIDA need to be availed within the period stipulated as per the approval letter.
A BB official told New Age on Wednesday that the country’s businesspeople had been taking significant of amount loans from the foreign sources for long as the rate of interests on the loans were lower than that of the loans disbursed by the local banks. 

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