Bangladesh Bank has granted special regulatory relief to two loan-defaulting Beximco Group companies, allowing them to access banking facilities despite a legal prohibition on lending to defaulters.
The central bank issued separate circulars on Monday, easing restrictions on Beximco LPG Unit-1, a defaulter at National Bank, and Shinepukur Ceramics, which has defaulted on loans from state-owned Sonali Bank.
The exemptions are intended to help the companies restore normal operations without removing their default status.
Under the decision, Beximco LPG Unit-1 can open letters of credit (LCs) against a 100 per cent margin and obtain working capital financing until 31 December 2027.
Bangladesh Bank relaxed restrictions under a section of the Bank Company Act 1991, which generally prohibits banks and financial institutions from extending credit facilities to loan defaulters.
The relief comes with conditions. Beximco LPG Unit-1 must deposit all its earnings into a designated bank account and make regular, proportionate repayments against National Bank’s outstanding dues.
Fresh lending must not create any liability for the government or Bangladesh Bank. National Bank will also be barred from seeking financial assistance from either authority against the new facilities.
Shinepukur Ceramics received similar relief, allowing Sonali Bank to renew its existing Tk105 crore working capital limit despite the company’s default status.
Bangladesh Bank said the exemption was granted in the national interest, requiring Shinepukur to comply with conditions similar to those imposed on Beximco LPG Unit-1.
The decisions allow both companies to access financing while placing repayment obligations and lending risks on the businesses and their banks.
Bangladesh Bank notified the managing directors and chief executive officers of all banks of the exemptions on Monday.
