BB eases forex rules for ship leasing by local firms

The Bangladesh Bank (BB) has allowed authorised dealer (AD) banks to facilitate outward remittances for lease rentals of ships and vessels by shipping companies incorporated in Bangladesh, aiming to strengthen the maritime sector.
The banks may execute such remittances in accordance with the existing foreign-exchange regulations governing payments for aircraft leases, according to a notification issued by the Bangladesh Bank BB on Thursday.
Officials at the central bank say the policy is intended to support the development of ocean-going shipping capacity under Bangladeshi ownership.
Earlier, the facility was limited to aircraft leasing by local companies.
Under the notification, AD banks have now been instructed to ensure that applicant companies comply with specific conditions.
Firstly, the company must obtain necessary permission or approval from the competent authority for the operation of leased ships or vessels.
Secondly, it must be compliant with regulatory requirements, including regular submission of returns to the central bank and repatriation of surplus earnings.
The central bank is working continuously to align foreign exchange regulations with sectoral development goals and promote sustainable growth in key industries, officials explain.
Industry insiders have welcomed the central bank's latest initiative, saying the policy will facilitate the expansion of Bangladeshi-operated ocean-going vessels.
They believe it will not only enhance the country's participation in international shipping but also contribute to foreign currency earnings while reducing dependency on foreign vessels, thereby saving valuable foreign exchange.

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