In a significant policy departure, Bangladesh Bank (BB) has allowed Abdul Monem Sugar Refinery Ltd. (AMSRL)-a loan-defaulter and subsidiary of the Abdul Monem Group-to continue importing raw materials by opening import letters of credit (LCs), despite banking regulations that normally prohibit such facilities for defaulting borrowers.
Under the special approval, the company will be permitted to open import LCs against a 100 per cent cash margin until 30 June 2027, enabling it to maintain production despite its classified loan status.
The approval, granted under a special provision of the Bank Companies Act, marks a regulatory deviation aimed at preventing disruptions to industrial production and the supply of essential commodities. Bangladesh Bank, however, has made it explicit that neither the government nor the central bank will bear any financial responsibility should the company or any participating bank incur losses under the arrangement.
The move follows a request from the Abdul Monem Group seeking temporary regulatory relief to continue importing essential raw materials and sustain its manufacturing operations.
Earlier, Bangladesh Bank spokesperson Arief Hossain Khan said the central bank could extend such regulatory support in exceptional circumstances to help large industrial groups continue production, safeguard employment and ensure an uninterrupted supply of essential goods.
Banking sector officials said the latest approval does not restore Abdul Monem Sugar Refinery's status as a regular borrower. The company will continue to be classified as a loan defaulter, while the special permission merely allows banks to open import LCs against full cash deposits-an exception to existing banking regulations.
Senior bankers said the central bank's decision is intended to prevent disruptions in the company's operations arising from shortages of imported raw materials. They believe the one-year regulatory relaxation will provide the refinery with breathing space to stabilise its business, improve its financial position and continue production.
The approval was confirmed through a Bangladesh Bank circular issued on Monday.
Banking industry insiders described the move as a pragmatic step to protect major industrial groups facing financial distress due to classified loans, arguing that allowing viable manufacturers to continue importing raw materials would help preserve production, employment and supply chains.
They also indicated that several other large domestic business conglomerates have sought similar regulatory support and are awaiting Bangladesh Bank's approval, signalling that the central bank may increasingly rely on targeted policy deviations to prevent financial stress from spilling over into the real economy.
