Foreign firms, joint ventures in economic zones to get loans in taka

Foreign and joint venture companies operating in the country's economic zones (EZs) will be able to get loans for their working capital in local currency (taka) from the domestic banking system.

The new policy will facilitate EZ industries that are producing goods for the domestic market.

The Foreign Exchange Policy Department of the Bangladesh Bank issued a circular on Monday allowing Type A (100% foreign-owned) and Type B (domestic and foreign-owned) industrial enterprises of EZs to get loans in taka from the local banking system. 

However, the facility will be applicable for companies producing and marketing their products for the domestic market and having no sources of income in foreign currency, the circular said.

At present, Type A and Type B industrial enterprises can access short-term foreign currency loans from external sources. Foreign-owned/controlled companies operating outside specialised zones can access working capital loans under banker-customer relations.

A senior official of the central bank, on condition of anonymity, told The Business Standard that the new instruction was given due to the ongoing dollar crisis. 

There are many foreign companies that produce products for sale in the Bangladeshi market. Many of them had to take loans in foreign currency to make various internal payments. From now on, they will be able to take loans in Taka, he added.