Regulatory Alerts2026-06-07
SFD Circular No. 02: Export Diversification Refinance Scheme
The Bangladesh Bank’s Monetary Policy Department has established the Export Diversification Refinance Scheme with a 3,000 crore taka non-refundable fund to diversify the country's export basket and mitigate market and product concentration risks. Participating Financial Institutions must provide term loans to eligible borrowers in new and emerging sectors at a maximum interest rate of 7%, with the Bangladesh Bank refinancing these loans at 4% under a strict 70:30 debt-equity ratio and reducing balance interest calculation. The circular mandates rigorous monitoring, prohibits hidden charges and working capital financing, and stipulates a 5% penalty interest for non-compliance or fraudulent disbursement by participating banks.
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