Govt issues $350m worth of guarantee for BPC

The government has issued $350 million's worth of twin guarantees for the Bangladesh Petroleum Corporation (BPC) with intent to import petroleum products for the current fiscal year, 2024-25.

The Finance Division published an order regarding the issue on Tuesday. The government has issued two sovereign guarantees for $300 million and $50 million separately.

The BPC is utilising $350 million for FY25, which was approved in the last meeting of the standing committee on non-concessional loan at the power, energy and mineral resources ministry, according to a source.

The government stands as a guarantor against deferred payment schemes.

"The BPC will have to inform the Finance Division within the 7th of every month," a high official of the ministry told the FE.

The facility has been taken under the financing of petroleum imports by the International Islamic Trade Finance Corporation (ITFC), the lending arm of the Islamic Development Bank (IsDB) Group.

The entity borrows from agencies and banks like the ITFC, HSBC, Standard Chartered and Citibank for this purpose.

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