Banks to impose at least 25pc margin on opening of LCs for non-essential items

Bangladesh Bank has asked banks to impose at least a 25 percent margin on the opening of letters of credit (LCs) for non-essential consumer items to curb the escalated import payments.

Baby food, fuel oil, life-saving drugs and products for farm, export and local industrial sectors would be excluded from the instructions, reports a circular issued by the central bank on Monday.

The central bank has decided it as part of its efforts to run the monetary and credit programme properly considering the current global state of affairs.

Banks have been asked to implement the instruction with immediate effect.