BRPD-1 Circular Letter No. 12: Refinance Scheme for Pre-shipment Credit

Page 1/2 Bangladesh Bank Chief Controller's Office Motijheel, Dhaka-1000 Bangladesh Ref: BRPD-1 Banking Regulation and Policy Department-1 April 09, 2026 BRPD-1 Circular Letter No. 12 Date: ------------------ 26 Chatur 1432 Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh Dear Sir, Regarding the Refinance Scheme for Pre-shipment Credit.

1. Reference is made to your attention regarding BRPD Circular No. 08 dated May 18, 2022, and BRPD Circular Letter No. 33 dated August 13, 2023.

2. In accordance with the instructions in Paragraph No. 08 of the aforementioned circulars, the tenure of the scheme formed under the Refinance Fund for Pre-shipment Credit was determined to be five (5) years starting from April 13, 2020, which ended on April 12, 2025. In light of the global economic situation created by various reasons including the ongoing war in the Middle East and Europe, there is a need to extend the tenure of the Refinance Fund for Pre-shipment Credit to overcome the existing crisis in export-oriented sectors such as the ready-made garment sector, maintain export growth, and increase domestic currency flow in the country while keeping production going. Now, through BRPD Circular No. 01 dated January 01, 2023, it has been decided that out of the own fund of Bangladesh Bank forming the $10,000 (Ten Thousand) Crore Export Facilitation Pre-Approval Fund (Export Facilitation Pre-Approval Fund), up to $5,000 (Five Thousand) Crore will be allocated for the Pre-shipment Credit sector and refinance will be provided from said fund on a 'Reimbursement against Reimbursement' basis.

3. To keep the operations of the discussed scheme running, certain paragraphs of the aforementioned circular are replaced as follows: Paragraph No. 6. Participating Banks: All scheduled banks operating in Bangladesh will be considered eligible to avail this refinance facility. Banks interested in availing refinance must sign a new Participation Agreement with Banking Regulation and Policy Department-3, Bangladesh Bank; Paragraph No. 7. Fund Management: The overall supervision, operation, and management activities of this fund will be carried out by Banking Regulation and Policy Department-3, Bangladesh Bank, Chief Controller's Office. For effective operation and management of the discussed fund, Banking Regulation and Policy Department-3 may issue necessary instructions to banks; Paragraph No. 8. Tenure of Fund: The tenure of the refinance scheme under this fund will be until December 31, 2030. The fund will be available during the mentioned period. Paragraph No. 14. (a) The concerned bank must apply for refinance to the Director (BRPD), Banking Regulation and Policy Department-3, Bangladesh Bank, Chief Controller's Office, within the week following the distribution of loans to customers according to the format prescribed by Banking Regulation and Policy Department-3. However, if for any reason the application for refinance cannot be submitted within the week following the distribution of pre-shipment credit, the application can be submitted within an additional 15 (fifteen) days thereafter mentioning appropriate reasons; (b) Other necessary information according to the format prescribed by Banking Regulation and Policy Department-3 (if any).

Page 2/2 (Continued from previous page) Paragraph No. 16. The Managing Director / Chief Executive Officer of the participating bank or their authorized officer must submit quarterly reports on loan distribution and collection according to the format prescribed by Banking Regulation and Policy Department-3, signed by them, to the Director (BRPD), Banking Regulation and Policy Department-3, Bangladesh Bank, within 15 (fifteen) days after the end of each quarter, i.e., by April 15, July 15, October 15, and January 15 based on March, June, September, and December respectively. Paragraph No. 19. Banks interested in availing the refinance facility will be provided with necessary details/formats by Banking Regulation and Policy Department-3 to effectively implement the various instructions contained in the circular along with the participation agreement.

4. Furthermore, to ensure that all eligible institutions in the ready-made garment sector and other export-oriented sectors benefit from the fund, the outstanding amount of the principal loan distributed under this fund in favor of any single institution or group shall not exceed $200 (Two Hundred) Crore at any specific time (Outstanding Amount). The definition provided in BRPD Circular No. 01 dated January 16, 2022, will apply for determining groups.

5. Additionally, other instructions contained in BRPD Circular No. 08/2022 and BRPD Circular Letter No. 33/2023 will remain unchanged.

6. These instructions are issued under the authority granted by Section 45 of the Bank Company Act, 1991. These instructions will come into force immediately.

Yours faithfully, (Gazi Md. Mahfuzul Islam) Director (BRPD) Phone: 9530252