Foreign companies can pay royalties in taka now
Bangladesh Bank officials think this new facility will put an end to the existing problems and foreign companies will show more interest in investing in the country
From now on, foreign companies, which operate in the Bangladesh economic zones for selling products in the local markets, will be allowed to pay royalties and technical knowledge and assistance fees in local currency (taka).
The Bangladesh Bank issued an order in this regard on Sunday (4 October).
Bangladesh Bank spokesperson and executive director Mohammad Sirajul Islam said the facility was given to attract foreign companies to invest more in Bangladesh.
At present, many foreign companies like Honda and Samsung are setting up factories in economic zones to sell their products in the domestic market. These companies sell products in local currency.
Previously, such foreign companies had to face difficulties in paying their fees as they did not have the opportunity to pay in local currency.
Bangladesh Bank officials think this new facility will put an end to the existing problems and foreign companies will show more interest in investing in the country.
"In the last few months, foreign companies have been given many kinds of policy support for doing business in Bangladesh. Foreign investment will be more attractive in this country as it allows the payment of royalties and technical assistance fees in local currency," said Mohammad Sirajul Islam.
Last Thursday, the Bangladesh Bank offered low-interest loans on easy terms to all foreign-owned and domestic-foreign-owned companies in the economic zones, under the government-announced incentive package.
