Bangladesh Bank has granted Shinepukur Ceramics Ltd a special exemption from banking restrictions, allowing the company to open import letters of credit (LCs) with 100 per cent cash margin to continue its production and protect employment.
It is the second such regulatory exemption granted by the central bank under the current government. Earlier, Bangladesh Bank extended the same facility to Abdul Monem Sugar Refinery Ltd.
The central bank issued a notification on Tuesday and simultaneously circulated the decision to all scheduled banks.
According to the notification, Bangladesh Bank, exercising its powers under Section 121 of the Bank Company Act, 1991, has suspended the application of Section 27 Ka Ka (3) of the Act in the case of Shinepukur Ceramics until 31 December 2027.
The exemption applies only to import LCs opened with 100 per cent cash margin through Sonali Bank PLC for the import of raw materials.
Under the relevant provision of the Bank Company Act, loan defaulters and guarantors of defaulted loans are barred from obtaining new credit facilities or opening import LCs. The latest decision temporarily exempts Shinepukur Ceramics from that restriction.
The exemption is subject to several conditions. Bangladesh Bank said all proceeds of the company’s business must be deposited into a designated bank account, from which Sonali Bank’s dues must be repaid on a proportionate basis on a regular basis.
The notification further stated that neither the Finance Division nor Bangladesh Bank would bear any liability arising from the facility. If any financial risk materialises, Sonali Bank will not be entitled to seek financial assistance from either the government or Bangladesh Bank.
Earlier, on 6 July, Bangladesh Bank granted a similar exemption to Abdul Monem Sugar Refinery Ltd., allowing it to open import LCs with 100 per cent cash margin by suspending the application of the same provision of the Bank Company Act until 30 June 2027.
