Dhaka, July 28 -- The central bank has allowed local contractors to open bank accounts abroad without its prior approval.

The resident contracting firms awarded with work orders to implement projects abroad can open bank accounts in the respective countries jointly with non-resident co-partners to credit payments received against the works.

Bangladesh Bank (BB) issued a notification on Tuesday, relaxing the relevant regulation.

"The accounts can also be deposited with short-term loans from external sources against the project works. But collaterals from Bangladesh are not permissible for the loan," it said.

It also said that the balance held in the accounts are usable for settlement of the project-related bona fide payments abroad.

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