BB eases forex rules for ship leasing by local companies

Banks have been given the go-ahead to facilitate outward remittances for lease rentals of ships and vessels by shipping companies incorporated in Bangladesh, in a move aimed at strengthening the country's maritime sector.

The central bank issued a circular in this regard today, stating that authorised dealer (AD) banks may process such remittances in line with existing foreign exchange regulations applicable to payments for aircraft leases.

The policy is intended to support the development of ocean-going shipping capacity under Bangladeshi ownership.

Previously, the facility was limited to aircraft leasing by local companies. Under the circular, AD banks have now been instructed to ensure that applicant companies comply with specific conditions.

First, the shipping company must obtain the necessary permission or approval from the competent authority to operate leased ships or vessels.

Second, the company must comply with regulatory requirements, including the regular submission of returns to Bangladesh Bank and the repatriation of surplus earnings.

Industry insiders have welcomed the initiative, noting that the policy will facilitate the expansion of Bangladeshi-operated ocean-going vessels.

They believe it will not only enhance the country's participation in international shipping but also contribute to foreign currency earnings and reduce dependence on foreign vessels, thereby saving valuable foreign exchange.