BRPD Circular Letter No. 33: Refinance Scheme for Pre-Shipment Credit

Bangladesh Bank Chief Executive Office Motijheel, Dhaka-1000 Bangladesh Ref No.: BRPD-Reg.Policy-33 Banking Regulation and Policy Department 13 August 2023 BRPD Circular Letter No. 33 Date: ------------------ 29 Srabon 1430 Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh Dear Sir, Regarding the Refinance Scheme for Pre-Shipment Credit.

1. Reference is invited to BRPD Circular No. 08 dated 18 May 2022 on the subject cited above.

2. Through Clause 10(k) of the aforementioned circular, instructions were issued to set the maximum customer interest rate at 3.5% for availing loan facilities under the Pre-Shipment Credit Refinance Fund, and through Clause 11, to pay interest at a rate of 0.5% to the Bangladesh Bank against the refinanced funds taken by the scheduled banks.

3. Now, in order to maintain consistency with the market-based interest rate policy effective from 01 July 2023, the following instructions are hereby issued regarding the determination of interest rates for providing new loan facilities under the Pre-Shipment Credit Refinance Fund: (a) The customer interest rate shall be a maximum of 5%; (b) Participating Banks (PBs) shall pay interest at a rate of 2% on the refinance facilities taken from the Bangladesh Bank.

4. If any bank fails to repay according to the repayment schedule provided to the Participating Banks (PBs) from this fund, interest shall be payable by the bank at the bank rate for the period of default.

5. Furthermore, all other instructions mentioned in BRPD Circular No. 08/2022 shall remain unchanged.

6. These instructions are issued under the powers conferred by Section 45 of the Bank Company Act, 1991.

7. These instructions shall take immediate effect.

Yours faithfully, (Mohammad Shahriar Siddique) Director (BRPD) Phone: 9530252