The CEO of Doha Bank has revealed that the Qatari bank has extended support to banks in Bangladesh to help them finance imports of essential goods on letter of credit (L/C) terms.

Bangladesh is amongst several countries where domestic banks have found L/Cs increasingly hard to come by over recent years due to tough economic conditions and US dollar shortages.

Essential urea imports

Doha Bank's CEO, Sheikh Tamim bin Hamad Al-Thani says that the Qatari bank has provided Bangladesh with L/Cs worth US$375 million to purchase urea from Qatar in the past year.

In an interview with the Qatar News Agency (QNA) he says this highlights Bangladesh's dependence on the Gulf state to obtain urea fertilisers.

Qatar is a major producer of urea. The country has significant natural gas reserves, which serve as the primary feedstock for the production of the nitrogen-based fertiliser.

Critical support

Sheikh Tamin also told the QNA that the volume of L/C discounts involving Doha Bank and Bangladesh increased by 77 per cent over the last three years.

He also reckons the bank's support is critical in helping businesses in Bangladesh access international banking services and expertise due to QNA's ability to support transactions written by unfunded as well as funded institutions.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.