BB will ask banks not to impose LC margin on essentials import until Ramadan

Bangladesh Bank is likely to issue a circular on Sunday asking all banks not to impose LC margin on import of essential goods until at least Ramadan.

“We will issue a circular on Sunday next from Bangladesh Bank not to impose LC margin on essential goods,” Bangladesh Bank governor Dr. Ahsan H. Mansur said.

He said this while briefing reporters after holding a meeting to discuss inflation at finance ministry with Finance Adviser Dr Salehuddin Ahmed in the chair.

The meeting also decided to relax the single borrower limit for the next two to three months to ensure supply of essential food items during Ramadan.

“We have some big importers in our country for whom single borrower limit is a constraint. I think that is a very important criteria not to violate this limit which will become a risk for the banks,” he said.

The central bank governor said that for this the capital of the banks should be increased.

“We will try to bring that reform in our banking sector. For the time being, ahead of the Holy Ramadan the single borrower limit should not be the constraints for the big importers.”

He said that the central bank will withdraw this temporarily for the next two-three months.

“This is a temporary decision for the time being for some handful of items,” he said adding that the items included are chick peas, edible oil and dates.

Mansur said that the ultimate aim of the government is that the single borrower limit must remain.

“We will strongly enforce that. And we will not violate that,” he said.