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Banks get exemption for power producers till 2023

Staff Correspondent
02 Mar 2023 20:27:36 | Update: 03 Mar 2023 00:08:00
Banks get exemption for power producers till 2023
— Representational Photo/TBP

The Bangladesh Bank on Thursday exempted all scheduled banks from complying with the single borrower exposure limit in issuing credit to power producers.

It issued a circular, saying the embargo in Sub-section 1 of Section 26 (kha) of the Bank Company Act 1991 will not be applicable till December 31 of this year to power producing companies.

The move is aimed at providing the required credit for these companies so that they can import fuel and other raw materials, the circular said.

“Though banks have to maintain a 25 per cent single borrower exposure limit as per the 1991 act, it will not apply to power producers till the end of 2023. The central bank will fix the limit in this case,” said a high official of the banking regulator.

The country has 160 power producing companies, including 81 independent producers, 20 rental power producers, 54 government plants, and five joint venture plants.