Bangladesh Bank on Thursday introduced a facility for exporters to repay loans taken out from its Export Development Fund in installments.
The entire debt can be repaid in three installments from now on.
The Foreign Exchange Policy Department of BB has issued a guideline in this regard and sent it to all licensed brokers engaged in foreign exchange transactions.
According to the BB directive, reimbursement of EDF loans can be made partially for a maximum of two instalments and the balance, if any, must be settled in one installment during the remaining eligible term.
Industry insiders said that so far EDF’s debt had to be paid in one go. Exporters encounter problems in this reimbursement process. Because export earnings are not available simultaneously, traders said.
In such a situation, exporters will be able to partially repay EDF’s debt in installments under the new directive.
The central bank provides foreign exchange support to exporters for the import of EDF manufacturing raw materials.
The duration of the EDF loan is 180 days, subject to the approval of the Bangladesh Bank, this period can be extended for another 90 days.