Bangladesh Bank yesterday waived the single borrower exposure limit in case of financing the construction of Padma Bridge.
“The decision has been taken considering the importance of the bridge and the government priorities,” BB said in a notice.
Banks are forbidden from extending loans that exceed 35 percent of their total capital at any point of time to a single party.
For instance, if a bank’s capital stands at Tk 1,000 crore, it cannot lend more than Tk 350 crore to a single borrower.
The exposure limit would not be applicable for contractors of the Padma Bridge, whose construction is expected to start in September, according to Communications Minister Obaidul Quader.
When constructed, the 6.15-kilometer-long bridge will directly connect 21 districts in the southern part with capital Dhaka.
The bridge project hit a snag as the World Bank in 2012 cancelled its $1.2 billion credit, saying it had proof of a corruption conspiracy involving Bangladeshi officials, executives of a Canadian firm and individuals.