B Mirror Report: Bangladesh Bank has relaxed legal restrictions to allow two loan-defaulting companies of Beximco Group to access banking facilities, aiming to keep their businesses operational.

The central bank issued separate circulars on Monday, granting special concessions to Beximco LPG Unit-1 and Shinepukur Ceramics.

Under the circular, restrictions under Section 27 Ka-Ka (3) of the Bank Company Act, 1991, will remain relaxed for Beximco LPG Unit-1, a loan defaulter of National Bank, until December 31, 2027.

The exemption will allow the company to open letters of credit (LCs) against 100% margin and obtain working capital facilities.

The provision generally prohibits banks and financial institutions from providing credit facilities to loan defaulters. The central bank said the relaxation was intended to help maintain the company’s normal business operations.

However, the exemption comes with several conditions. Neither the government nor Bangladesh Bank will bear any liability for the newly extended loans. National Bank will also be barred from seeking financial assistance from either the government or the central bank in connection with these loans.

In addition, Beximco LPG Unit-1 must deposit all its income into a designated bank account and repay National Bank’s outstanding dues regularly on a proportional basis from those earnings.

Bangladesh Bank has also granted special relief to Shinepukur Ceramics, another Beximco Group company that has defaulted on loans from state-owned Sonali Bank.

The central bank has relaxed the legal restrictions to allow renewal of the company’s existing Tk 105 crore working capital limit, citing national interest.

Shinepukur Ceramics will have to comply with conditions similar to those imposed on Beximco LPG Unit-1 to receive the banking facilities while remaining in default.

Bangladesh Bank informed the managing directors and chief executive officers of all banks about the special arrangements through letters issued on Monday.