News Column

BoI scrutiny committee clears $ 243.31 m foreign borrowings

February 27, 2014

Dhaka, Feb 28 (UNB) – The Board of Investment (BoI) Scrutiny Committee for approval of Private Sector foreign borrowing cleared borrowings of US$ 243.31 million Foreign Loans against 12 projects.

The approval came from the 83rd meeting of the BoI Scrutiny Committee for approval of foreign loan / supplier’s credit with Bangladesh Bank Governor and Convenor of the committee Dr Atiur Rahman in the chair at Bangladesh Bank on Thursday, said a Bangladesh Bank press release.

The committee approved US$ 243.31 million for 12 (twelve) projects-US$ 64.8 million for Summit Meghnaghat Power Company Limited, US$ 25.0 million for Summit Bibiyana II Power Company Limited, US$ 35.0 million for CEAT Bangladesh Limited, US$ 50.0 million for Airtel Bangladesh Limited, US$ 9.0 million for Edible Oil Limited, US$ 26.0 million for United Ashuganj Ltd, US$ 9.64 million for Global Attire Limited, US$ 4.6 million for Nippon Paint (Bangladesh) Ltd, US$ 5.0 million for Ananta Casualwear Ltd, US$10.4 million for Desh Energy Ltd. and rest of the amount for Kaiser Sanko JB Textile Ltd, Oasis Fashion Ltd and Mondol Fabrics Ltd. The highest interest rate of the approved proposals is 6-month LIBOR+4.50% p.a.

Committee members including representatives of the Prime Minister’s office, Ministry of Finance, Ministry of Commerce, Ministry of Industries, Board of Investment and officials of the committee secretariat were also present in the Thursday’s meeting.

The committee approved foreign loan of US$ 1821 million in FY 2013 which was 43 percent higher than FY 2012 (US$ 1040 million). There was a continuous growth in inflow of foreign loans over the last five years and this uptrend continues even today.

The main purpose of this foreign loan is to import capital machinery and equipments of the project. The committee officials (two Joint Directors of Bangladesh Bank) informed the committee that more foreign financing proposal is under processing and close consideration for the approval.

The committee hope, that this type of foreign financing will be helpful to keep the Dollar price in stable, the deficit of country “Balance of Payment” will decrease and it will create more job opportunity for the country.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: United News of Bangladesh

Story Tools