Proposals for borrowing from abroad by private sector industrial enterprises registered with Bangladesh Investment Development Authority (BIDA) shall require prior authorization of BIDA. Other entities under the preview of Bangladesh Export Processing Zones Authority (BEPZA), Bangladesh Economic Zones Authority (BEZA) and Bangladesh Hi-Tech Park Authority (BHTPA) shall require prior authorization from Bangladesh Bank.
Private sector industrial enterprises and the entities operating in special zones i.e. Export Processing Zones (EPZ), Economic Zones (EZ), and Hi-Tech Parks (HTP)-can obtain medium and long term foreign currency loans from the Offshore Banking Units (OBU) of scheduled banks in Bangladesh. However, such borrowing requires prior approval from the Bangladesh Bank through its Foreign Exchange Investment Department.
Foreign owned/controlled companies engaged in manufacturing or services output activities for three years or longer in Bangladesh can access Taka term loans from the domestic market. This is to mention here that total debt of the firm/company does not exceed the 50:50 debt equity ratio.
Foreign owned/controlled firms are free to access to short term working capital loans (Interest free/interest bearing) from parent companies/shareholders. Short term working capital loan is also admissible with interest at 3% for maximum 6 years from the date of inception of manufacturing/service output activities by the borrowing enterprises.
Foreign owned/controlled firms/companies can freely access to local banks for working capital financing on the basis of normal banker customer relationship.
References: