Bangladesh Bank increases working capital credit limit

| Updated:
April 29, 2022 4:14:53 p.m.

Bangladesh Bank (BB) on Wednesday increased the working capital credit limit to maintain the productivity and momentum of all economic activities in the country, including imports and exports.

To maintain productivity and momentum in overall economic activities, the central bank has asked banks to increase the already-sanctioned working capital lending limit, said a BB circular released today, reports the BSS.

If necessary, banks will increase the limit based on banker and customer relationships reducing risk.

In the recent global economic environment, the cost of production is increasing due to rising prices of various commodities, including raw materials, and an increase in transportation costs in the international market.

As a result, despite the maximum use of the working capital credit limit already sanctioned by the banks provided in favor of the borrowers, it is not possible to complete production activities, including payment for the necessary raw materials. depending on demand, which is hampering the production process.

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