Bangladesh’s recyclers struggle to buy as central bank tightens screws on credit

Ship recyclers in Bangladesh say it is now almost impossible to buy tonnage after the country’s central bank further reduced on Friday the value of letters of credit that can be issued for foreign currency purchases to $3m.

This follows a move by the Bangladesh Bank earlier in July that required central approval for letters of credit over $5m and the suspension of letters of credit over $25m except in exceptional circumstances.