BB takes more steps
Bangladesh Bank yesterday issued four notices centring the ongoing global pandemic, including one instructing banks to simply accept advance payments as high as $500,000 from businesses seeking to import COVID-19-related lifesaving drugs and essential medical items, including kits and equipment.
Global drug companies are actually refusing to export such items if the payments aren't made in advance, said a central bank official.
That is why the central bank eased the guidelines, which is applicable until September 30 this season.
Importers are usually permitted to make advanced payments of no more than $10,000 for the import of general items, including recycleables meant for commercial purposes and consumer goods.
In the next notice, the central bank increased from half a year to one year the timeframe within which businesses are to create import payments.
This timeframe relaxation aims to cushion the enterprises from the ongoing financial crisis stemming from the coronavirus pandemic.
Many exporters have already imported adequate raw materials to create items designed for export, said a central bank official.
However they are facing hurdles when wanting to export their products in the wake of decreasing global demand.
From this backdrop, the central bank increased the duration within which import payments need to be made so that the businesses do not become defaulters.
This instruction will also be applicable until September 30.
In the 3rd notice, the central bank instructed banks to organise meetings of their respective board of directors through video conference with a view to tackling the city transmission of coronavirus.
Executive, audit and risk management committees of the respective bank boards will need to follow the instruction.
Every director who attends board meetings through video conference are certain to get their required honorarium.
Moreover, the footages of video conferences should be preserved.
Within the last notice, the central banks asked banks to suspend any training programmes where the number of participating officials is a lot more than 10.
Banks will be permitted to organise only those training programmes in which the number of attendees is a maximum of 10.
Even so, in such instances the banks must follow the associated rules that the World Health Organisation has about the arrangement of seats.
