Dhaka, April 20 -- Foreign corresponding banks start easing line-of-credit tightening for their Bangladeshi counterparts as quick payment of overdue import bills following governance change pays off, officials and bankers say.

Large international banks that typically act as correspondents for commercial banks here had squeezed limit of their lines of funds for the Bangladeshi banks from the outset of the financial year (FY) 2024-25 mainly because of overdue bill buildups coupled with unrest stemming from the latest mass uprising.

And it put the country's commercial lenders in serious trouble in dealing with international trade, according to them.

After changeover in state power following the July-August mass uprising, the leadership in...