Dhaka, July 3 -- Bangladesh Bank (BB) has relaxed lending regulations for foreign-owned companies operating in the country for at least three years, in a move aimed at enhancing their access to long-term financing from the domestic banking system.

According to a circular issued on Wednesday, local banks are now permitted to finance up to 60% of a project's cost in local currency for eligible foreign firms, while the remaining 40% must be met through equity contribution by the company. Previously, the maximum allowable debt-equity ratio stood at 50:50.

The revised policy applies to foreign entities engaged in manufacturing or service sectors that have maintained operations in Bangladesh for three years or more. These companies will now b...