BRPD Circular Letter No. 39: Settlement of Fund Taken from Export Facilitation Pre-finance Fund (EFPF) — BB — BD

Bangladesh Bank
Chief Executive Office
Motijheel, Dhaka-1000
Bangladesh
Ref No.: BRPD-Regulatory Policy-39
Banking Regulation and Policy Department
13 September 2023

BRPD Circular Letter No. 39
Date: -------------------
29 Bhadra 1430

Managing Director / Chief Executive Officer
All Scheduled Banks Operating in Bangladesh

Dear Sir,

Regarding the settlement of funds taken under the Export Facilitation Pre-finance Fund (EFPF).

Reference is drawn to your attention to BRPD Circular Letter No. 01 dated 01 January 2023 on the subject matter mentioned above.
Paragraph 12 of the said circular provides the instruction that "regardless of the customer's trade loan tenure, the Bangladesh Bank will provide pre-finance facilities to the participating bank for a maximum tenure of 180 days (six months), which must be repaid in a lump sum with interest at the end of the tenure." Additionally, Paragraph 14(a) of the said circular states that "the loan taken by the bank for pre-finance shall be repaid in a lump sum from the current account of the participating bank maintained with the Bangladesh Bank, along with interest, on the date of completion of the tenure granted for pre-finance from the date of disbursement."
Now, in order to reduce the cost of funds (Cost of Funds) for the loans taken by banks for pre-finance under the EFPF, it has been decided that the funds taken by the bank may be repaid in full or in part before the maturity date. In the case of partial settlement, the remaining unpaid portion shall be payable in a lump sum with interest/profit at the stipulated maturity date.
Furthermore, other instructions of BRPD Circular No. 01/2023 shall remain unchanged.
These instructions are issued under the powers conferred under Section 45 of the Bank Company Act, 1991.
These instructions shall come into effect immediately.

Yours faithfully,

(Mohammad Shahriar Siddique)
Director (BRPD)
Phone: 9530252