Bangladesh Bank has revised its foreign exchange policy to allow greater local borrowing for foreign-owned or foreign-controlled companies operating in the country. In a circular issued on Wednesday, the central bank increased the allowable debt-equity ratio for such companies from 50:50 to 60:40.
This policy change will enable these companies, engaged in manufacturing or services in Bangladesh for at least three years, to access Taka term loans for capacity expansion or BMRE (Balancing, Modernisation, Rehabilitation, and Expansion) purposes. Companies can now secure domestic term loans regardless of local equity content, provided they meet credit norms and prudential regulations, including single borrower exposure limits.
The move aims to attract and retain foreign investment by providing more flexible financing options to strengthen Bangladesh’s industrial and service sectors. All other instructions regarding foreign exchange borrowing remain unchanged under this revised policy.
