Bangladesh Bank has revised its foreign exchange policy to ease local borrowing for foreign-owned or foreign-controlled companies operating in the country.

In a circular issued by the Foreign Exchange Policy Department on Wednesday, the central bank announced an increase in the allowable debt-equity ratio for such companies from 50:50 to 60:40.

The move is aimed at facilitating access to Taka term loans for capacity expansion or BMRE (Balancing, Modernisation, Rehabilitation and Expansion) purposes.

The updated provision applies to foreign-owned or controlled companies engaged in manufacturing or service output activities in Bangladesh for at least three years.