Sonali Bank is grappling with delays in processing Letters of Credit (LCs), specifically for government agency imports totaling $755 million as of June 11. The bank’s Deputy Managing Director highlighted the urgency in a letter to Bangladesh Bank, seeking immediate dollar assistance to settle outstanding dues for 72 import LCs. Sonali Bank’s Managing Director acknowledged challenges in securing consistent dollar support from Bangladesh Bank, impacting timely payments and risking penalties from foreign banks. The reduction in dollar supply by Bangladesh Bank, aimed at bolstering foreign exchange reserves, has further strained Sonali Bank’s ability to manage import obligations, especially for critical commodities. Despite verbal instructions from the central bank governor to exercise caution in LC issuance, Sonali Bank contends with mounting overdue payments, prominently affecting entities like Bangladesh Petroleum Corporation and Bangladesh Telecommunication Company Limited.
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