The Bangladesh Bank (BB) has relaxed the condition regarding general credit limit to the coal-based electricity-producing companies for ensuring uninterrupted credit flow to such power plants.
Issuing a circular on Tuesday, the central bank waived the provision of Section 26kha (1) of Bank Company Act 1991, lifting the lending restriction of over 25 per cent of their paid-up capital for next five years.
But the central bank would determine the upper ceiling beyond 25 per cent for the next five years, said the notification.
The move came to facilitate credit, so that the plants can finance various costs, like purchase of land, import of necessary machinery and raw materials, expense to install machinery, and maintenance and overhauling cost.
