Bangladesh Bank new policy for offshore banking operation

Senior Reporter,

Legalvoice24 : Bangladesh Bank (BB) has issued a new policy
allowing banks to give fully foreign owned companies under the export
processing zones (EPZs), economic zones and hi-tech parks financial services
under offshore banking operation.

“Under the new policy, banks can provide all financial services to fully
foreign owned companies under the export processing zones (EPZs), economic zones and hi-tech parks as per the eligible terms and conditions,” according to a BB circular issued here today.

But, in case of medium term and long term credit facilities, the existing
terms and conditions will remain unchanged.

Without prior permission of the central bank, banks can provide short term
loan to the joint venture companies of the EPZs, economic zones and hi-tech
park from the offshore banking under the eligible terms and conditions.

A bank, in its offshore banking operation, may discount or purchase
accepted usance or deferred bills against import from abroad on banker-
customer relationship applying due diligence and arrange payment to overseas suppliers.

A bank, in its offshore banking operation, may discount or purchase
accepted usance or deferred export bills against direct and deemed exports of products produced in Bangladesh subject to compliance of applicable instructions.

With prior permission from the Bangladesh Bank, banks, as part of their
offshore banking, may make medium or long term loans or advances to the
industrial enterprises resident in Bangladesh.