B’desh Bank grants special facilities to two Beximco defaulters

Bangladesh Bank has granted special banking facilities to two loan-defaulting companies of Beximco Group, allowing Shinepukur Ceramics to renew a Tk 105 crore working capital loan limit and Beximco LPG to open letters of credit (LCs).

The facilities will remain effective until December next year, according to two separate circulars issued by the central bank on Monday.

Under the directives, Shinepukur Ceramics will be allowed to renew its Tk 105 crore working capital loan limit with Sonali Bank despite being a loan defaulter. Until December 2027, the provisions of Section 27KaKa(3) of the Bank Company Act, 1991, will not apply to the company in this regard.

The central bank granted the exemption under Section 121 of the act, citing the public interest. On August 17, it had also allowed Shinepukur Ceramics to open LCs against 100 per cent margin.

Separately, Beximco LPG has been permitted to open LCs through National Bank against a 100 per cent margin. This facility will also remain in effect until December 2027.

Bangladesh Bank has imposed two conditions on both companies. The facilities must not create any liability for the government, and all income of the companies must be deposited into a designated account. Payments to creditors must then be made from that account on a proportionate basis.

Section 27KaKa(3) of the Bank Company Act, 1991, restricts the provision of banking facilities to loan defaulters. However, Bangladesh Bank has exempted the two companies from the restriction after consultation with the government.

Besides the two Beximco companies, the central bank has recently granted similar special facilities to several other loan-defaulting businesses.

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