The Bangladesh Bank has lifted the loan ceiling for power plants for the next six months in wanting to ease the ongoing energy crunch due to global crisis.
As per the Bank Company Act, a bank can lend a borrower a maximum 25 per cent of its capital.
After issuance of central bank’s directive, the power stations can now apply for any amount of loan to weather the crisis. The latest directive was sent out to chief executives of all banks on Tuesday, reports bdnews24.com.
“This opportunity has been given for the import of fuel oil and other raw materials in order to maintain an uninterrupted supply of money required for power generation,” it read.
The Bangladesh Bank will consider applications on a case-to-case basis to fix loan limits for the next six months.
Fuel prices began rising around the world due to the Ukraine-Russia war and impacted the expenses for electricity production.