Burma and Bangladesh look set to do more business after reaching an agreement to increase the value of direct letters of credit (L/Cs) available for bilateral trade.

Trades via direct L/Cs of up to US$ one million are now available through Bangladesh's Sonali Bank branch at Teknaf on the Bangladeshi-Burmese border.

New limit

According to a Bangladeshi official, the new L/C limit has been initiated very recently and will most likely replace L/C transactions hitherto channelled through banks in Singapore.

The previous limit for direct L/Cs between Bangladesh and Burma was US$50,000.

Trade and investment

Officials from both countries have been focused on boosting bilateral trade and investment over recent months.

In particular, Bangladesh is pressing Burma for duty-free arrangements for certain goods and for the release of unused Burmese agricultural land for Bangladeshi investors.

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