ICCB calls for wider access to competitive foreign currency financing

Affordable access to foreign currency financing has become increasingly critical for sustaining Bangladesh’s international trade, supporting industrial production and stimulating investment amid persistent economic challenges, International Chamber of Commerce (ICC) Bangladesh President Mahbubur Rahman has said.

He stressed that innovative trade financing instruments, including Usance Payable at Sight (UPAS) Letters of Credit (LCs) and Export Credit Agency (ECA)-backed financing, could help businesses overcome liquidity constraints, reduce financing pressures and maintain uninterrupted imports of essential industrial inputs and capital machinery.

Mahbubur Rahman made the observations while delivering his closing remarks at a workshop titled “Obtaining Import Financing in Foreign Currency – Challenges and Solutions”, jointly organised by ICC Bangladesh and Germany-based ODDO BHF SE at Renaissance Dhaka Gulshan Hotel on Saturday.

He said Bangladesh was navigating a difficult economic environment characterised by persistent inflationary pressures, foreign exchange constraints, subdued private sector investment and uncertainties in global trade.

The Bangladesh Bank's tight monetary policy, adopted to contain inflation and maintain macroeconomic stability, had also contributed to slower private sector credit growth, creating additional challenges for businesses seeking financing for imports, expansion and new investments, he added.
Against this backdrop, he emphasised the importance of diversifying financing sources and introducing more flexible, cost-effective mechanisms to facilitate international trade.

Explaining the potential of UPAS Letters of Credit, Mahbubur Rahman said the instrument allows importers to obtain extended payment periods while ensuring that overseas suppliers receive payments promptly through the financing bank.

Such arrangements can ease immediate pressure on importers' cash flows, improve working capital management and help businesses maintain regular supply chains without disrupting commercial relationships with international suppliers.

He also highlighted the potential of ECA-backed financing, which can provide longer-term funding at competitive costs for importing capital machinery, advanced technology and industrial equipment.

According to him, these financing arrangements could play a significant role in accelerating industrial modernisation, supporting infrastructure development, expanding renewable energy capacity and diversifying Bangladesh's export base.

He noted that access to affordable financing would be particularly important for industries seeking to upgrade production facilities, improve technological capabilities and meet increasingly demanding international standards.

Referring to Bangladesh's upcoming graduation from the Least Developed Country (LDC) category, the ICC Bangladesh president said the country needed to strengthen its economic resilience, export competitiveness and financial sector capabilities to navigate the changing international trade environment.

He stressed that preparations for the post-LDC transition should go beyond trade negotiations and market access, requiring comprehensive financial sector reforms, improved access to international financing and stronger institutional capacity.

He also underscored the importance of sound risk management, regulatory compliance and closer cooperation among commercial banks, regulators and international financial institutions to ensure the effective utilisation of foreign currency financing facilities.

Highlighting Bangladesh-Germany economic relations, Mahbubur Rahman described Germany as an important trading and development partner, offering considerable opportunities for cooperation in trade finance, technology transfer and industrial investment.

He expressed optimism that greater collaboration with German financial institutions could help Bangladeshi businesses access international financing expertise and develop more sustainable trade financing arrangements.

Reaffirming ICC Bangladesh's commitment to strengthening professional expertise in the banking and business sectors, he said the organisation continued to promote capacity-building through specialised workshops and internationally recognised certification programmes offered by ICC Academy and Walbrook Institute London, formerly known as The London Institute of Banking and Finance (LIBF).

Speaking at the closing ceremony, Muhammad A. (Rumee) Ali, Chairman of the ICC Bangladesh Banking Commission, said bankers were facing increasingly complex challenges and needed to exercise greater caution in selecting clients, conducting due diligence and assessing financial and operational risks.

He emphasised the importance of strengthening professional judgment and risk assessment capabilities to ensure that financing decisions remained prudent amid economic uncertainties.

Thomas Kuerten, Director and Senior Regional Manager of International and Corporate Banking at ODDO BHF SE, Frankfurt, and Ataur Rahman, Secretary General of ICC Bangladesh, also addressed the programme.

The technical sessions were conducted by Karim Dolibois and Uschi Kirchner of ODDO BHF SE, focusing on the practical aspects of UPAS Letters of Credit, ECA-backed financing, trade documentation and risk management.

The Dhaka workshop brought together 77 participants, including three representatives from Germany's development finance institution KfW and one representative from the International Finance Corporation (IFC).

Meanwhile, ICC Bangladesh is organising a similar workshop at Hotel The Peninsula Chittagong on Sunday, bringing together 35 bankers representing 17 banks and 12 corporate clients sponsored by Eastern Bank.

The same facilitators are conducting the technical sessions in Chattogram, providing participants with practical insights into international import financing mechanisms and their application in Bangladesh's business environment.

Mahbubur Rahman thanked ODDO BHF SE for sponsoring both workshops and acknowledged Eastern Bank's support for the Chattogram programme.