A. Policy for BSB's own investment :
Debt equity Ratio ranging
from 50:50 to 60:40 depending upon the nature
of the project, repayment capability, sponsor
credit worthiness etc.
Investment Limit Taka 10
crore in a single project but above Taka 10
crore may be financed in syndication.
Working capital loan for
BSB-financed projects, especially, for operative
and profitable projects under the branch offices
of the bank.
BMRE (Balancing, Modernization,
Replacement and Expansion) facility given
to regular good borrowers of the Bank.
Reduction of 1.5% interest
or 10% rebate of chargeable interest for regularly
Reduction of rate of interest
to attract prospective entrepreneurs.
Introduction of lending
facilities to proprietorship and partnership
concerns alongside traditional financing of
private and public limited companies.
Reduction of time limit
for processing of loan application from 90
to 60 days.
Special emphasis to promote
agro-based small industries.
Sub-sectors selected by
Bangladesh Bank under EEF (Equity & Entrepreneurship
Fund) is encouraged for financing.
Joint venture projects
based on technical collaboration and foreign
equity participation is given special preference.
B. Government Policy,
Especially, for Foreign Investment:
Major Fiscal Incentives
Generous Tax Holiday up
to 12 years;
Concessionary Tax for
5 years after completing initial 10 years;
Duty free import of capital
machinery and raw materials for export oriented
industry and concessionary import for domestic
Avoidance of Double Taxation;
Tax exemption on royalties,
technical know-how fees received by any foreign
collaborator, firm, company and expert;
Exemption of income tax
up to 3 years for the foreign technicians
employed in industries specified in the relevant
schedule of income tax ordinance;
100% export-oriented industry
outside EPZ will be allowed to sell 20% percent
of their products in the domestic market on
payment of applicable duties and taxes;
Major Non-Fiscal Incentives
100% foreign equity allowed;
Unrestricted exit policy;
Full repatriation facility
of dividend, profit and invested capital;
Complete legal protection
for invested capital;
Local and foreign borrowing
Fund raising from local
capital market allowed;
Permanent residence permit
and citizenship for foreign investors;
Multiple Entry Visa for
foreign investors and employees;
One stop service for foreign
investors by BOI/BEPZA;
by investing a minimum of US$ 75,000 (non-repatriable);
C. Foreign investment
is specially desired in the following categories:
To set up Industries in
the Export Processing Zones (EPZs);
Basic industries based
mainly on local raw materials;
High technology export-oriented
or import substitution products;
Quality enhancement, marketing
and capacity building of existing industries;
D. Prospective Sectors for Foreign Investment
in Bangladesh :
Textile (Ready Made Garments,
Textiles, Composite Textiles).
Frozen Foods (Frozen Shrimp,
Frozen Fish, Other Items).
Leather (Finished Leather,
Electronics (Home Appliances,
Telecommunication Equipment, Semi-Conductor).
Agro-based Industry (Fresh
Fruits & Vegetables, Cooked/Semi Cooked
Food Items,Canned Juice, Dairy and Poultry,
Livestock and Fisheries).
(Data Processing, Software Development, Hardware
Ceramic (Tableware, Sanitary
Light Engineering (Machinery
Parts, Bi-cycle, Other Consumer Items).
Natural Gas-based Industries
(Electricity, Fertilizer, Petrochemicals,
CNG Distribution Network).
Export-oriented and Export-linkage
Steel Industry in Bangladesh.