Dhaka: Bangladesh Bank (BB) has taken a significant step to address the ongoing domestic energy crisis by relaxing the single borrower exposure limit specifically for Liquefied Petroleum Gas (LPG) imports. This measure comes in response to the shortages triggered by the Iran war, aiming to ensure a steady energy supply throughout the country.
According to Bangladesh Sangbad Sangstha, a circular was issued today and distributed to all banks, outlining the new guidelines. The circular states that if a bank’s single borrower exposure limit exceeds 25%, it may still extend additional loans for LPG imports, provided it receives approval from Bangladesh Bank. This decision underscores the central bank’s commitment to maintaining energy security amidst rising geopolitical tensions.
Furthermore, Bangladesh Bank will retain the authority to determine the specific lending limits for individual institutions under this relaxation policy. The measure is designed exclusively for LPG importers to prevent any potential disruptions in the supply chain. By allowing banks to surpass the 25% exposure limit in these cases, the central bank aims to stabilize the domestic energy market during this period of uncertainty.