LC margin bar withdrawn for crisis-hit six banks

Bangladesh Bank has withdrawn the restrictions on opening letters of credit (LCs) imposed on six crisis-hit banks.

From now on, these banks will no longer be required to maintain a 100 percent margin when opening LCs, a requirement that had been made mandatory in August this year.

The development follows a recent meeting between Bangladesh Bank and the managing directors of the six affected banks: Islami Bank Bangladesh, First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, and Bangladesh Commerce Bank.

The central bank, through a letter, instructed these banks to revert to the previous rules instead of adhering to the 100 percent margin requirement.

The boards of all six banks were restructured after the fall of the Awami League government on August 5.

These banks' boards were previously dominated by the controversial business conglomerate, S Alam Group.