Bangladesh Bank has assured correspondent banks that overdue payments related to letters of credit (LCs) will be settled within five to six months. During a virtual meeting, the central bank revealed that $800 million in payments had already been cleared, with priority sectors like power, energy, and fertilizers being addressed. The central bank is collecting foreign currencies from the interbank market to facilitate state-run banks in clearing the payments. Although the total volume of overdue payments is estimated to be around $12-13 billion, the country has committed to avoiding defaults. Major entities with overdue payments include the Bangladesh Petroleum Corporation and other state-run organizations.
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