Bangladesh Bank has relaxed lending restrictions for two Beximco Group companies, allowing them to continue operating under specific conditions.
In circulars issued Monday, the central bank said Beximco LPG Unit-1 and Shinepukur Ceramics would receive relief to restore normal business.
Beximco LPG Unit-1, a loan defaulter with National Bank, may open letters of credit against 100 percent margins and receive working capital until Dec 31 next year, despite restrictions under Section 27 Ka-ka (3) of the Bank Company Act 1991.
The provision bars banks and financial institutions from lending to defaulters, leaving the company unable to access financing.
Bangladesh Bank said the government and central bank would bear no liability for new lending. National Bank could not seek financial support from either in future.
To qualify, Beximco LPG Unit-1 must deposit all income into a designated bank account and use the proceeds to make proportionate repayments to National Bank.
Shinepukur Ceramics, a defaulter with state-owned Sonali Bank, has received similar relief.
The legal restriction will be relaxed to allow renewal of its Tk 1.05 billion working-capital limit, the central bank said, citing the national interest.
The company must also meet conditions similar to those imposed on Beximco LPG Unit-1 to receive fresh credit despite its default status.
The circulars were sent to managing directors and chief executives of banks.
Earlier, on Oct 9, the central bank allowed Beximco Computers to renew a bank guarantee worth Tk 160 million for supplying goods under four government projects.
EXIM Bank, now merged into Sammilito Islami Bank, had issued the guarantee.
The central bank said the bank’s board could renew it following the merger, granting its no-objection under Section 121 of the Bank Company Act.