BB allows Exim Bank to renew Beximco Computers’ guarantees

Bangladesh Bank (BB) has allowed Export Import (Exim) Bank PLC, now part of Sammilito Islami Bank, to renew bank and performance guarantees issued on behalf of Beximco Computers Ltd, subject to certain conditions.

The central bank granted the permission as a conditional exemption from a restriction under the Bank Company Act, 1991, according to a notice.

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The exemption covers four contracts with government and semi-government entities under projects of the Ministry of Posts, Telecommunications and Information Technology and Dhaka Wasa.

The permission applies only to Exim Bank and to the renewal of guarantees issued for Beximco Computers for the listed projects of the ministry and Wasa.

Before renewing the guarantees, Exim Bank must obtain approval from the board of directors of Sammilito Islami Bank, the notice said.

It also said the government and BB would bear no liability for the guarantees. Neither Exim Bank nor Sammilito Islami Bank can seek financial assistance from the government or the central bank in the future in connection with the guarantees.

The exemption will remain in force until further instructions are issued.

Companies under the Beximco Group have been under regulatory scrutiny in recent years.