Bangladesh Bank eases foreign borrowing rules

Bangladesh — Bangladesh Bank has relaxed regulations on external borrowing by fully foreign-owned industrial enterprises, allowing them to access loans from parent companies, associates, and shareholders abroad under a general authorization framework. The move aims to facilitate easier access to finance for manufacturing and service-sector enterprises operating both within and outside specialized zones, including EPZs, EZs, and High-Tech Parks. Eligible firms can obtain short-term (less than one year), medium-term (one to five years), and long-term (over five years) foreign loans subject to specified conditions, including interest-free options and cost-bearing loans capped at 3% per annum. The central bank also allows outstanding borrowings to be converted into equity. The circular, signed by Bangladesh — Bangladesh Bank Director Mahmudun Nabi, came into immediate effect on July 15, 2026.