Bangladesh Bank has issued new directives to resolve letter of credit (LC) complications in importing essential energy, including liquefied petroleum gas (LPG). The central bank’s Banking Regulation and Policy Department (BRPD)-2 released a circular on Wednesday, aiming to maintain smooth energy supply across the country. The order temporarily suspends certain provisions of Section 26Ka(1) of the Bank Company Act, 1991, which restricts bank loans to a single person, institution, or group for energy imports.

According to the circular, the suspension will remain effective until December 31, 2026. During this period, Bangladesh Bank will determine the new upper limit replacing the previous 25 percent cap mentioned in the Act. The directive was issued under the authority granted by Section 121 of the Bank Company Act and has been sent to managing directors and chief executive officers of all scheduled banks.

The move is intended to ease financing constraints for energy importers and ensure uninterrupted fuel supply in the domestic market through year-end 2026.