Mandatory guarantee provision against foreign loan withdrawn

Bangladesh Bank on Wednesday withdrew its mandatory guarantee provision against any foreign loan to be taken by a local firm following the approval of the Board of Investment (BoI). A central bank circular, issued by its Foreign Exchange Policy Department (FEPD), said the mandatory approval of the Bangladesh Bank required by the foreign lending agency regarding the deposit supervision service has been withdrawn against foreign loans approved by the BoI. "So, from now on, those foreign loans to be approved by the BoI do not require the BB approval for providing the guarantees like corporate guarantee, personal guarantee, third party guarantee to the lending agency against their loans," said the circular, according to UNB.