BB eases overseas payments for ship hiring, like airlines

Shipping companies in Bangladesh will now be able to make charter and vessel lease payments abroad more easily, as Bangladesh Bank (BB) has relaxed the approval process and allowed banks to handle most transactions directly under standard foreign exchange guidelines.

Under the new system, authorised dealer (AD) banks can process payments for ship chartering, leasing and related services based on valid contracts and supporting documents, without requiring case-by-case approval from the central bank, according to a circular issued by BB on Thursday.

The move is expected to expedite foreign payments and reduce delays that previously affected shipping operations.

Previously, shipping companies often faced lengthy processing times as banks were required to conduct detailed document verification and, in some cases, seek Bangladesh Bank approval for large or complex transactions.

This frequently resulted in operational disruptions, particularly when payments were time-sensitive and linked to vessel schedules or international contracts.

According to the circular, the revised framework aligns shipping remittance procedures more closely with those applied in the aviation sector, where aircraft lease and service payments are routinely processed by banks under established guidelines with minimal regulatory intervention.