Bangladesh Bank on Thursday issued for banks separate guidelines on foreign exchange transactions by enterprises operating in the country’s Hi-Tech parks.
According to BB officials, there are guidelines on forex transactions by banks for entities located in export processing zones and economic zones and the central bank felt the necessity for issuing separate guidelines for Hi-Tech park entities.
For HTPs, enterprises would be categorised in three categories based on their foreign and local share holdings.
The BB circular issued by its foreign exchange policy department said that foreign investors or joint venture companies would be allowed to invest in the HTPs upon taking registration from the Bangladesh High-Tech Park Authority.
Central bank’s foreign exchange investment department must be informed within 14 days of shares issuance to non-resident investors.
Similarly, transfer of shares of the companies not listed with the stock exchange, from resident to non-resident, non-resident to resident and non-resident to non-resident must be informed to BB along with required documents. Besides, banks have been allowed to open non-resident taka account and foreign currency account to facilitate overseas investment in the country.
The guidelines on foreign exchange transactions and other relevant circular of the central bank must be followed in obtaining credit facilities from abroad, other associates in Bangladesh, other banks in Bangladesh (both long and short term, as the case may be) by the enterprises of HTPs.
However, for obtaining medium- and long-term debt from abroad or off-shore banking units in Bangladesh by the enterprises of HTPs, applications for borrowing approval must be submitted to Bangladesh Bank through BHTPA following the procedures mentioned in paragraph 7 of chapter 15 of GFET.
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