Bangladesh Bank allows outward remittances for ship leasing

Bangladesh Bank has eased foreign exchange regulations to allow local shipping companies to make outward remittances for leasing ships and vessels.

The move aims to support the country's maritime sector and expand Bangladesh-owned ocean-going shipping capacity.

In a notification issued on Thursday, the central bank instructed authorised dealer banks to facilitate remittances for lease rentals of ships and vessels by shipping companies incorporated in Bangladesh.

Under the new directive, banks will process such payments under the existing foreign exchange framework that currently governs lease payments for aircraft.

Central bank officials said the facility has been extended to the shipping sector to encourage the development of Bangladesh-owned maritime transport capacity. Previously, similar foreign exchange facilities were available only for aircraft leasing by local companies.

To qualify, shipping companies must obtain the necessary approvals from the relevant authorities for operating leased ships or vessels, according to the notification.

The companies must also comply with all regulatory requirements, including the regular submission of returns to Bangladesh Bank and the repatriation of surplus earnings, officials said.

The move is expected to provide greater flexibility for local shipping firms seeking to lease vessels from overseas operators, reducing regulatory hurdles in accessing international maritime assets