The Bangladesh bank has formed a cell under the Foreign Exchange Investment Department to monitor foreign loans for the private sector.
The central bank on August 8 issued an office order about the foreign loans monitoring cell by creating seven new posts—one additional director, two joint directors, two deputy directors and two associate directors.
Previously, foreign loans were not monitored separately. But at present, foreign loans taken by the private sector are growing rapidly, which prompted the central bank to take such as initiative, said a high official of Bangladesh Bank.
Generally, Bangladesh Investment Development Authority (BIDA) issues primary approval to take foreign loans.
The central bank’s monitoring cell will conduct a prior inspection on the justification of foreign loans. The cell also will conduct post-monitoring or inspection on the utilisations of foreign loans or supplier’s credit.
The cell will have to submit a quarterly review report to the scrutiny committee and other miscellaneous works assigned by the authority, as per Bangladesh Bank’s office order.
