ANNOUNCEMENT 11 Mar 2014In March 2014, the government of Bangladesh announced altered domestic business conditions for foreign investors.
NUMBER OF INTERVENTIONS
On 11 March 2014, the Bangladesh Bank published Foreign Exchange Circular No. 12 removing a restriction on local currency borrowing from the Bangladeshi market by foreign controlled/owned companies operating in Bangladesh.
The original restriction limited the share of such local currency loans out of the total borrowing. Under the previous regime, foreign-owned companies this share was restricted to the percentage of company equity held by Bangladeshi citizens.
This restriction has been removed for companies in the manufacturing and the services sector who have been active in Bangladesh for at least 3 years.