Debt-ridden cos cleared to take forex loans
Dhaka, Jan. 3 -- Despite debt-equity ratio of some private companies already having crossed the permissible limits, they have been allowed to take foreign-currency loans from multilateral lenders while Bangladesh reels from depleting foreign-exchange reserves.
The companies sought the funds to open letters of credit (LCs) for importing capital machinery, equipment, and raw materials, officials said.
The high-powered scrutiny committee on foreign loan/supplier credit, headed by Bangladesh Bank Governor Abdur Rouf Talukder, approved the loan proposals at a recent meeting at the central bank.
However, the committee asked the companies to "maintain the debt-to-equity ratio at 70.30 throughout the project life".
The panel also asked the no...
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