Bangladesh Bank has relaxed conditions for fully foreign-owned industrial enterprises to obtain foreign loans. According to a circular issued on Wednesday, these companies can now borrow from their parent companies, affiliates, and shareholders. The policy applies to enterprises operating in export processing zones, economic zones, high-tech parks, and other manufacturing and service sectors outside these zones.

Under the new rules, firms outside special zones may take interest-free short-term loans for working capital without prior approval from Bangladesh Bank. They may also secure interest-bearing loans at a maximum annual all-in cost of 3 percent for business needs such as raw material procurement. Loans must be repaid in a lump sum at maturity and can be rolled over for up to three years. For loans between one and five years, companies can borrow up to USD 50 million interest-free for capital expenditures and up to USD 5 million with interest. Longer-term loans beyond five years are also allowed with a maximum interest rate of 3 percent annually.

Industry stakeholders said the move will help foreign-owned firms access low-cost financing and attract more foreign investment into Bangladesh.