Shinepukur Ceramics gets exemption to open LCs with 100% margin

Bangladesh Bank logo

Bangladesh Bank (BB) has exempted Shinepukur Ceramics Limited from a specific restrictive provision allowing the company to open Letters of Credit (LC) with a 100 percent margin through Sonali Bank PLC to import essential raw materials. 

The central bank issued an official directive on Tuesday (July 14), signed by Deputy Governor Dr. Md. Kabir Ahmed and circulated by Director Md. Bayazid Sarker of the Banking Regulation and Policy Department-2, notifying the top executives of all scheduled banks across the country.

Bangladesh Bank declared that the restrictions under Section 27 Ka(3) of the same act will remain suspended for Shinepukur Ceramics Limited until December 31, 2027.

The central bank noted that the special regulatory waiver has been granted strictly on humanitarian and economic grounds to ensure the continuity of the factory’s industrial production and to protect the employment of its massive workforce.

However, the apex bank attached strict conditions to safeguard the state-owned lender's funds:

Designated Account Tracking: Shinepukur Ceramics Limited must deposit all its operational and business income into a single, specific designated bank account.

Proportionate Debt Clearance: Sonali Bank PLC must regularly recover its outstanding dues from that specific account on a proportionate basis.

Zero State Liability: The central bank explicitly clarified that no financial liability or obligation will be passed on to the Finance Division or Bangladesh Bank against this special credit facility.

No Future Bailouts: The directive strongly stated that Sonali Bank PLC, the Government, or any involved entity cannot claim any financial assistance or bailouts from Bangladesh Bank regarding this arrangement in the future. - UNB