Problems relating to Trade and Investment on Bangladesh
12. Exchange controls |
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Issue |
Issue details |
Requests |
Reference |
| (1) Delays, Defaults and Nebulous Procedures for Negotiating Letters of Credit Payments | - There has been a chronic delay in Letters of Credit (L/C) negotiation irrespective of the amount. However, it is getting better, since issuance of Bangladesh Bank (Central Bank of Bangladesh) Notice on penalty levy for delay in negotiation by L/C. | - It is requested that GOB prompts the Ministries and Agencies for Commercial Banks' negotiation of L/C. | - The Uniform Customs and Practice for Documentary Credits (UCP) - Provisions Prompting Improvement in L/C Negotiation Delays |
| (Action) - All imports via banks are subject to the L/C approval in principle, regardless of the source of the fund procurement. - In 2012, the Japanese Ambassador to Bangladesh requested Bangladesh Central Bank to improve the delays in payment by Letters of Credit. |
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