Circular No. 06 dated 2 March 2023 issued by the Banking Regulation and Policy Department of the Bangladesh Bank on “Exemption from the General Credit Limit under Section 26B(1) of the Bank Company Act 1991 for Electricity Producing Companies”March 31, 2023
Aiming to maintain an uninterrupted flow of money required for power generation to import fuel oil and other raw materials in the power sector, any organization or group generating power can borrow any amount from a bank.
The central bank has waived, for the purpose of lending to electricity producers, the provision of Section 26B(1) of the Bank Company Act 1991, which states that banks cannot lend to any one borrower an amount that exceeds 25% of their paid-up capital. The circular became effective on its issue date and will remain in effect until 31 December 2023 or upon further notice from the Bangladesh Bank.