Bangladesh’s central bank, Bangladesh Bank, has recently said that businesses that export goods guaranteed by reputed export credit agencies (ECAs) will be able to enjoy loans as per their need notwithstanding even if it goes beyond the single borrower exposure limit.
This was underlined in media reports which citing an official of the central bank maintained said there is less risk in exporting products when the shipment is guaranteed by a reputed ECA as the ECA will pay exporters for their goods even if the foreign buyer is unable to do so and for this reason, loans given by banks to exporters will not create any risk.
It may be mentioned here that as per the single borrower exposure limit, banks are not allowed to give out loans that are more than 25 per cent of their capital to a single entity, person or business group even if exporters who supply goods guaranteed by ECAs that are AAA rated by globally accepted credit rating agencies can now avail of loans beyond the single-borrower exposure limit.
