Rupali Bank has provided a detailed explanation regarding the settlement of foreign loan instalments on behalf of SS Power, clarifying that the process involved multiple procedural and technical challenges, most notably surrounding the operation of its Foreign Currency (FC) account. According to the bank, these limitations significantly influenced the method through which repayment funds were ultimately transferred.
Bank officials stated that while the FC account permitted the crediting of foreign currency, existing system constraints prevented any debit transactions from being executed. This operational restriction emerged as one of the principal obstacles in completing instalment payments through the standard channel. As a result, Rupali Bank maintained that it had no viable alternative but to remit the repayment amounts directly to the DSAA (Debt Service Account Agreement) account to ensure compliance with repayment deadlines.
The bank further clarified that all foreign currency used for the loan repayments was purchased exclusively using funds supplied by SS Power itself. At no stage were bank-owned or third-party funds utilised for the purpose. Each instalment was therefore settled strictly through the borrower’s own financial resources, ensuring that the repayment process remained transparent and borrower-funded.
Officials acknowledged that Bangladesh Bank has already issued a formal letter seeking clarification over the procedure followed. In response, Rupali Bank has assured the central bank that necessary approvals will be obtained in advance before any future instalments are dispatched. The bank emphasised that its actions were driven by technical constraints rather than any deliberate attempt to bypass regulatory requirements.
To provide clarity, Rupali Bank outlined the procedural framework involved in the repayment process, highlighting the function of each account and mechanism used during settlement:
| Step | Process Description |
|---|---|
| FC Account | Foreign currency could be credited but could not be debited due to system limitations |
| DSAA | Designated account used for servicing foreign loan instalments |
| DSRA | Reserve account used when DSAA funds were insufficient |
| Dollar Purchase | Conducted entirely using funds provided by SS Power |
Despite the complexities involved, bank officials stressed that all repayments were completed within the stipulated timelines. Any delay, they noted, could have resulted in a breach of the loan agreement, potentially triggering financial penalties or reputational consequences for both the borrower and the bank. Ensuring timely settlement was therefore deemed essential.
Rupali Bank reiterated that while prior approval was not obtained in this instance, the institution did not intentionally contravene regulatory norms. Instead, the situation arose due to technical and procedural constraints that prevented adherence to conventional processes.
As of now, Bangladesh Bank has not issued any formal public statement regarding the matter. However, the issue remains under review, with further guidance from the central bank expected to shape future repayment procedures.