Permission to contractor to open an account abroad

Bangladeshi contractors can operate accounts abroad without the approval of the central bank. Bangladesh Bank has given permission to open joint accounts with the partners of those countries in case of implementation of projects outside the country.

On Tuesday (July 27), the Foreign Exchange Policy Department of Bangladesh Bank issued a directive in this regard.

As per the guidelines, the contractor will be able to manage accounts abroad in case of project implementation outside the country. The income earned from the project will be credited as managed. Short-term loans from abroad can be deposited as such for the implementation of the project. However, no collateral can be taken from Bangladesh in case of borrowing. Necessary project cost payment can be settled with the status of accounts conducted abroad.

The contractor has been asked in the circular to submit the progress of project implementation and bank account statement to the concerned authorized dealer bank branch on quarterly basis. Besides, it has been required to bring the earned income to the country within one month of the completion of the project activities. However, this can be done if it is necessary to save a certain amount of money for a certain period of time as per the terms of the contract executed with the project authority.

Sunbd/NJ