Foreign-owned or controlled manufacturing and service companies operating in Bangladesh for at least three years can now borrow long-term loans in local currency on easier terms, as per a new Bangladesh Bank circular issued Wednesday. The debt-equity ratio requirement has been relaxed from 50:50 to 60:40, allowing companies to borrow 60% against 40% equity.
Other lending policies, such as the single borrower limit, remain unchanged. Bangladesh Bank stated this move aims to facilitate greater access to local financing, encourage foreign investment, and accelerate expansion or modernization of foreign companies in Bangladesh’s manufacturing and service sectors.
