Bangladesh Bank allows LPG imports on deferred payment

Bangladesh Bank (BB) has eased credit facilities for liquefied petroleum gas (LPG) importers, allowing traders to import LPG on deferred payment or credit for up to 270 days.

The central bank issued a circular on the matter today, Monday. The circular said LPG is typically imported in bulk and later bottled in cylinders for sale.

This process requires comparatively more time for storage, bottling and related activities. Taking these factors into account, the central bank has instructed that LPG be treated as an industrial raw material for the purpose of trade credit, it added.

Under existing foreign exchange regulations, imports of industrial raw materials are eligible for supplier’s or buyer’s credit for a maximum period of 270 days. The same facility will now apply to LPG imports.

In the circular, Bangladesh Bank also directed banks to assist importers in arranging buyer’s credit from foreign banks and financial institutions. In addition, provisions have been made to offer bill discounting facilities through offshore banking units.