After weeks of default, Dutch Bangla Bank Ltd has repaid the money of letters of credit opened by a subsidiary of Islamic Development Bank (IDB), said official sources.
DBBL managing director informed it in a letter to the secretary of Bank and Financial Institutions Division last week.
The money was repaid to the Saudi Basic Industries Corporation.
Islamic Corporation for Insurance of Investment and Export Credit (ICIEC) opened the LC worth US$75,240 to import instruments for implantation of an IDB project in Bangladesh.
Prime Bank, which also opened LC for the ICIEC, repaid money this week after being on default.
According to a Banking Division official, DBBL sent the letter after it was asked if the LC money was repaid.
Earlier, ICIEC sent a letter to the government’s economic relations division on the non-repayment of LC money. ERD issued a letter to the banking division along with forwarding ICIEC letter.
It expressed concerns over the non-payment by the two local banks.
The letter said LC confirmation cost would increase if the banks continued to be default on LC payment.
It said the local banks should regularly repay loans of foreign financial institutions and banks to protect uphold image of themselves and the country as well.
DBBL MD K Shamshi Tabrez’s letter read: “We made the repayment on December 12 through HSBC New York by cancelling the earlier arrangement with Mashreq Bank, New York.”
“Our HSBC New York account has been debited on December 13. Acknowledgement was also received from the bank supposed to receive the money.”
He said it may be mentioned that DBBL always tried to keep the commitment to the bank’s overseas counterparts to uphold the national image.
“We assure of continuing the best banking practice in future.”
