Despite claims from the central bank that the dollar crisis in Bangladesh is easing, the reality does not reflect this situation. Banks are struggling to find necessary dollars for settling import bills through letters of credit (LCs). As of February, the outstanding LC liabilities for 20 government entities amounted to $11.36 billion, while private sector entities owed approximately $70 million. The Bangladesh Petroleum Corporation tops the list with a liability of $9.36 billion, followed by the Health Directorate with $520 million, Petrobangla with $440 million, the Directorate General of Defense Purchase with $340 million, and the Navy with $290 million. The debts incurred during the previous government are now problematic, with $1.2 billion needing payment within the current month to avoid additional interest charges. Delays may deter foreign banks from opening new LCs for Bangladesh. According to the central bank spokesperson, $10 billion worth of LCs have been opened in the current fiscal year, compared to $12 billion during the same period last year, yet imports have not decreased; rather, the monitoring by the central bank has led to a reduction in outstanding LCs.
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