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The Bangladesh Bank has allowed loan defaulter Abdul Monem Sugar Refinery Limited to open import letters of credit (LCs) against a 100 percent cash margin under a special provision of the Bank Company Act, 1991.
The central bank issued a circular on Monday (July 6) through its Banking Regulation and Policy Department, instructing managing directors and chief executives of all scheduled banks. A separate official notification was attached to the circular.
According to the notification, any scheduled bank may open import LCs for Abdul Monem Sugar Refinery Limited against full cash margin under Section 121 of the Bank Company Act, 1991. The approval will remain valid until July 31, 2027.
Bangladesh Bank clarified that the approval does not create any financial liability for either the government or the central bank. It also stated that neither the company nor any concerned bank will be able to seek financial assistance from the government or Bangladesh Bank in connection with this facility.