BRPD Circular Letter No. 11: Establishment of Export Facilitation Pre-finance Fund (EFPF)

Bangladesh Bank Head Office Motijheel, Dhaka-1000 Bangladesh. Ref No.: BRPD Circular Letter No. 11 Banking Regulation and Policy Department 25 April 2023 Date: ----------------- 12 Bangabda 1430 Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh Dear Sir,

Regarding the establishment of the Export Facilitation Pre-finance Fund (EFPF).

Reference is drawn to your attention to BRPD Circular No. 01, dated 01 January 2023, on the subject cited above.

2. Through the aforementioned circular, in order to make export-oriented industrial establishments more resilient against the adverse economic situation and to maintain the current momentum of development and expansion of the country's export-oriented industries, guidelines were issued for the operation of an Export Facilitation Pre-finance Fund (Export Facilitation Pre-finance Fund (EFPF)) to facilitate liquidity for this sector. Clause 8(d) of the aforementioned guidelines directs that if any customer availing loan facilities from the Export Facilitation Pre-finance Fund has unrepatriated export proceeds (Unrepatriated Export Proceeds (UEP)) against the exports, the concerned exporter will not be eligible to avail any further loan facilities under this fund.

3. It has recently been observed that interested customer establishments wishing to avail loan facilities are not taking the opportunity to avail loan facilities from the Export Facilitation Pre-finance Fund established through the aforementioned circular issued by this department, even though the said exporter has not repatriated export proceeds after availing loan facilities from the Under-Advance Bill (UAB) Fund in favor of the interested establishment or a person/establishment/company belonging to the same group.

4. It is now directed that if any export-oriented industrial establishment fails to repatriate export proceeds after availing loan facilities from the UAB or EFPF against an export order, the concerned exporter, along with the interested person/establishment/company belonging to the same group, will not be eligible to avail any loan facilities from the EFPF against their new export orders.

5. Other instructions contained in the aforementioned circular shall remain unchanged.

6. These instructions are issued under the powers conferred by Section 45 of the Bank Company Act, 1991, and shall take immediate effect.

Yours faithfully, (Md. Ali Akbar Farazi) Director (BRPD) Phone: 9530252