BB eases forex regulations for EPZ cos

BSS . Dhaka | Update:

Bangladesh Bank (BB) has relaxed foreign exchange regulations for the companies in Export Processing Zones (EPZs) to bring uniformity in regulations between enterprises of EPZs and Economic Zones (EZs).

“Equity from foreign shareholders and authorized loan received in foreign currency from external sources may be credited in Foreign Currency (FC) accounts of ‘Type A’ and ‘Type B’ enterprises of EPZs,” said a BB circular here today.

‘Type C’ enterprises of EPZs may obtain foreign exchange from Authorised Dealers (ADs) to settle obligations for importing capital machinery by the conversion of equivalent equity and authorized loan received in local currency, the circular added.

Similarly, ‘Type B’ enterprises may convert their local equity or authorized loan received in local currency into foreign exchange to settle obligations for importing capital machinery if equity or authorized foreign loan received from abroad falls short to meet such obligations.

Instructions regarding repayment of Taka loans along with interest shall remain unchanged.

According to the Bangladesh Export Processing Zone Authority (BEPZA), 100 percent foreign owned including Bangladesh nationals ordinarily resident abroad are Type-A company.

Joint venture between foreign and Bangladesh entrepreneurs resident in Bangladesh are Type-B company and 100 percent Bangladesh entrepreneurs resident in Bangladesh are Type-C company.

   
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