The private-sector borrowers can extend guarantees like corporate guarantee, personal guarantee, third-party guarantee, etc. to the foreign lenders as per the foreign-loan agreement.
However, the guarantee can be extended provided the loan concerned has been approved by the Bangladesh Investment Development Authority (BIDA).
The Bangladesh Bank (BB) on Wednesday issued a circular on repayment guarantees by importers against short-term import finance under buyer's credit.
It said that the issuance of repayment commitments by the authorised dealers (ADs) is subject to approval from Bangladesh Bank as per the foreign exchange regulations.
The short term import finance under the buyer's credit against admissible imports on sight letters of credit is accessible in accordance with guidelines for foreign exchange transactions-2018.
The external lenders including offshore banking operations extend buyer's credit against usance import bills duly accepted by the ADs.
