Bangladesh Bank tightens pvt airlines’ spending in int’l routes

Staff Correspondent | Updated at 01:59am on July 20, 2018

Local private airlines operating on the international routes must take Bangladesh Bank permission for remitting any fund from Bangladesh for expenses in foreign ports, if they face deficit after spending from their receipts at the ports.
The BB issued a circular in this regard on Wednesday stating that the private airlines would have to apply to the foreign exchange operation department of the central bank for remittance of money for making up the deficit while making bonafide transactions in foreign ports.
The BB said the airline operators would be allowed to meet their foreign expenses only from the receipts at foreign ports but they would be allowed to remit fund with BB permission in case of any deficit.
The operators were also asked to repatriate fund from abroad on a regular basis if the entities have any excess earnings after meeting expenses.
The central bank under the Foreign Exchange Regulation Act, 1947 (amended in 2015) asked the Bangladeshi private airlines operating on the international routes to submit monlhly statement as per a BB-set format to the central bank’s foreign exchange operation department within 15 days of following month.
The statements must be submitted through one nominated authorised dealer-bank branch only, the BB circular said.
In case of changing AD bank branch, there will be no requirement to get prior approval from the central bank, the BB circular said.
However, a statement certified by the existing nominated AD with regard to remittances up to date must be forwarded to the proposed new nominated AD, the BB circular said.
The BB circular became effective immediately and the ADs were asked to bring it to the notice of all the clientele concerned.
The central bank also instructed the airline operators to follow guidelines on foreign exchange transaction and related circulars for booking of passage or freight.