BB exempts Beximco LPG from banking law provision

Bangladesh Bank has issued a notification exempting Beximco LPG Unit-1 Ltd from a provision of the Bank Company Act, 1991, in connection with opening letters of credit (LCs) against 100 per cent margin and providing working capital financing.

The central bank’s Banking Regulation and Policy Department-2 issued a circular on Monday, October 12, and sent it to the managing directors and chief executive officers of all scheduled banks for necessary action.

According to the circular, a copy of the notification issued on the same day concerning the exemption for Beximco LPG Unit-1 Ltd has been circulated to the banks.

The exemption relates to Section 27Ka(3) of the Bank Company Act, 1991, in connection with National Bank PLC opening LCs against a 100 per cent margin and providing working capital to the company.

However, the circular does not specify the detailed conditions of the exemption, its duration or the reasons behind the decision.