On 25 December 2023, the Central Bank of Myanmar (“CBM”) issued Notification No. 27/2023 to reduce the time frame for the inbound remittance of export earnings. Previously, under Notification 27/2022 dated 6 May 2022, the CBM required that export earnings from goods exported to Asian countries be deposited into exporters’ bank accounts within 45 days, […]

On 5 December 2023, the Central Bank of Myanmar (“CBM”) announced, through its letter no. 1/2937 (“Letter 1/2937”), that it will no longer determine the foreign exchange rate on foreign currency transactions made through authorized dealer (“AD”) banks via the foreign exchange online trading system. Consequently, sellers and buyers are now free to determine the […]

In a move to enhance offshore banking in Bangladesh, scheduled commercial banks can now actively participate in offshore banking operations (OBOs) by obtaining approval from the Bangladesh Bank. The comprehensive guidelines, approval procedures, and operational protocols for OBOs, including the acceptance of foreign currency (FC) deposits, are meticulously outlined in BRPD Circular No-02  dated 25 […]

In Bangladesh, securing a loan from a bank typically requires providing collateral, with immovable property being the preferred and most secure form of security. However, challenges arise when banks consider other movable assets as collateral. This legislation aims to address these issues by streamlining lending using movable property as collateral and establishing legal protections for […]

The circular underscores the imperative for prompt action in resolving ongoing cases in the Artha Rin Adalat or money loan court. It underscores the legal responsibility outlined in the Money Loan Courts Act of 2003 to accelerate the adjudication of money-lending cases within a stipulated timeframe. Recent assessments by the Bangladesh Bank reveal substantial delays […]

On 30 August 2023, the new Commercial Bank Law (Amendment) No. 39/NA dated 17 July 2023 (the “New Bank Law”) was promulgated by the Prime Minister of the Lao PDR, and on 13 October 2023, it was published in the Lao Official Gazette. The New Bank Law aims to set out the different categories of […]

In an effort to reduce the shortage of foreign currency, the Bangladesh Bank issued a directive to banks, instructing them to distribute remittances to recipients within a maximum of two days from when they are received from overseas senders. Although this rule has been in force since 2014, the Bangladesh Bank recently found a lack […]

Aiming to address emerging legal complexities in loan recovery procedures, the Bangladesh Bank has published a new circular that makes it compulsory for banks to take thumbprints to ensure the proper recovery of depositors’ money. Individuals seeking loans from banks will now be obligated to furnish specific charge documents, contingent upon their borrower status, loan […]

In a concerted effort to enhance the efficiency and precision of reporting freight charges for both exports and imports, the Bangladesh Bank has issued a circular mandating a shift towards a digital approach for this process. The directive applies to all ADs, airlines, shipping companies, licensed freight forwarders, and general sales agents operating within Bangladesh. […]

The circular urges authorized dealers (“ADs”) in foreign exchange to establish an online platform for the convenience of non-resident Bangladeshis (“NRBs”) to open and manage non-resident investor taka accounts (“NITAs”). The circular underscores the significance of boosting foreign investment in Bangladesh and provides clear directives to ADs on creating a user-friendly digital interface to streamline […]

In a concerted effort to recover bad debts and alleviate the burden of classified loans, the Bangladesh Bank has taken measures to ease the loan rescheduling process for the country’s shipbuilding industry. This initiative is aimed at facilitating smoother repayment processes. Under the newly relaxed policy, non-bank financial institutions will now have the option to […]

To enhance the country’s export trade, the government has taken the initiative to offer export incentives or cash assistance for the export of 43 specific products during the current financial year 2023-24 (1 July 2023 to 30 June 2024). Exporters will be eligible to receive cash incentives ranging from 1% to 20%, similar to what […]

Aiming to increase environmentally-friendly initiatives, the Bangladesh Bank has announced a refinancing scheme formed for eco-friendly products, projects, and initiatives. With funding of BDT 4,00,00,00,000 , affordable loans will now be available for pre-certified green industries, green buildings, and buildings featuring green initiatives. Customers must have first obtained final certification before being eligible to apply […]

The Asian Development Bank (ADB) has pledged $3.5 billion to support the expansion of Dhaka’s metro system, specifically the MRT-5 southern route. This funding includes a $2.5 billion loan from ADB and $1.0 billion in credit from other foreign lenders as co-financers. The Dhaka Mass Transit Company Limited (DMTCL) will oversee the construction of the […]

In light of the notable success achieved through the completion of the long-term financing facility (“LTFF”) program under the Financial Sector Support Project, the Bangladesh Bank (“BB”) has decided to extend its provision of long-term financing support to private sector firms, particularly those in export-oriented manufacturing industries. The primary objectives of this initiative are to […]

The State Bank of Vietnam has recently issued a new version of the regulations relating to obtaining foreign loans by Vietnamese borrowers. Several drafts of the regulation were published earlier.  This update summarizes some important terms of the new regulation as compared to such drafts and the previously effective regime.

The Department of Trade under the Ministry of Commerce (“MOC”) announced via Bulletin 11/2023 dated 28 June 2023 (“Bulletin 11”) and subsequent Bulletin 13/2023 dated 6 July 2023 (“Bulletin 13”) that starting from 1 July 2023, exporters exporting pulses, corn, sesame, and peanuts no longer have to make advance payments on their export earnings. Previously, […]

Under Notification 15/2023 issued on 13 July 2023 (“Notification 15”), the Central Bank of Myanmar (“CBM”) has lowered the percentage of export earnings that must be converted into Myanmar Kyats (“MMK”) from 65% to 50%. The original percentage of 65% was set on 5August 2022 by the CBM under Notification 36/2022, which required that exporters […]

The Bangladesh Bank has introduced a loan rescheduling facility aimed at providing relief to the country’s shipbuilding industry, which has been adversely impacted by the COVID-19 pandemic and the volatility in the global economy. This policy allows banks to reschedule defaulted loans for borrowers in this sector, granting them a period of 10 years, including […]

Aiming to facilitate foreign exchange transactions related to foreign investments in Bangladesh, the Bangladesh Bank has decided that authorized dealers (ADs) are permitted to retain foreign currency received from foreign investors. ADs can open foreign currency (FC) accounts in the names of local companies, which will issue shares in compliance with regulatory instructions. Under the […]