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 repaying borrowers.
• 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:

    B.1 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 industry;
• 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;

    B.2 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 allowed;
• 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;
• Permanent residentship by investing a minimum of US$ 75,000 (non-repatriable);

C. Foreign investment is specially desired in the following categories:

• Export-oriented industries;
• To set up Industries in the Export Processing Zones (EPZs);
• Basic industries based mainly on local raw materials;
• Labor-intensive/technology-intensive/capital-intensive industries.
• 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, Leather Goods).
• 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).
• Information Technology (Data Processing, Software Development, Hardware manufacturing.
• Ceramic (Tableware, Sanitary ware, Insulator).
• Light Engineering (Machinery Parts, Bi-cycle, Other Consumer Items).
• Natural Gas-based Industries (Electricity, Fertilizer, Petrochemicals, CNG Distribution Network).
• Telecommunication.
• Export-oriented and Export-linkage Industries.
• Steel Industry in Bangladesh.