BRPD Circular Letter No. 04: Fixing Rate of Interest on Import Financing

Ref No: BRPD Circular No. 04 BRPD Circular No. 04 BRPD Ref No Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka. February 14, 2011 BRPD Circular Letter No. 04 Date: ---------------------- Falgun 02, 1417 Managing Director / Chief Executive Officer All Scheduled Banks Operating in Bangladesh Dear Sir, Regarding Fixing Rate of Interest on Import Financing. Reference is invited to BRPD Circular No. 18 dated May 06, 2010 on the subject cited above. Through the said circular, the maximum interest rate on import financing for daily necessity items such as edible oil (refined and unrefined), chickpeas, lentils, peas, onions, spices, dates, fruits, and sugar was fixed at 12% to ensure the supply of these items and to keep their prices affordable. However, it has been observed that some banks are charging interest rates exceeding 12% on import financing for the aforementioned items, which is a clear violation of the instructions contained in the circular. In this regard, you are advised to ensure proper compliance with the directive fixing the maximum interest rate at 12% on import financing for the aforementioned daily necessity items. This directive shall be effective immediately. Please acknowledge receipt. Yours faithfully, (K. M. Abdul Wadud) General Manager Phone: 7117825