The Foreign Exchange Policy Department of Bangladesh Bank (BB) has issued a new circular on Wednesday clarifying the procedures for Authorized Dealers (ADs) regarding the issuance of bank guarantees and Standby Letters of Credit on behalf of importers.
This measure aims to facilitate the importation of urgent goods and services in the power and energy sector.
According to the guidelines referenced in the circular, ADs are now permitted to provide bank guarantees or Standby Letters of Credit to foreign suppliers as a form of payment security for importers, pending approval from the appropriate government ministry.
The initiative is designed to expedite the import process, particularly in times of emergency when timely acquisition of goods and services is crucial.
ADs must ensure that any guarantees or Standby Letters of Credit issued are directly linked to legitimate sales-purchase contracts for the underlying import transactions. This requirement maintains the integrity and compliance of the import trade process.
The BB has emphasized that all existing regulations and guidelines related to import trade will continue to apply, ensuring that the circular enhances rather than disrupts current practices.
The Bank has advised all authorized dealers to communicate these new procedures to their relevant stakeholders promptly.
These updates reflect the government's commitment to support critical sectors and ensure a steady supply of necessary imports during emergencies.
