BRPD Circular No. 32: Export Facilitation Pre-finance Fund (EFPF)

Bangladesh Bank Chief Executive Office Motijheel, Dhaka-1000 Bangladesh Ref No.: BRPD-Reg.Policy-23 Banking Regulation and Policy Department 13 August 2023 BRPD Circular Letter No.-32 Date: ------------------ 29 Srabon 1430 Managing Director/Chief Executive Officer All Scheduled Banks operating in Bangladesh Dear Sir, Regarding the Export Facilitation Pre-finance Fund (EFPF).

1. You are requested to refer to BRPD Circular No. 01 dated 01 January 2023 on the subject cited above.

2. Through paragraph 9(k) of the aforementioned circular, it was directed that the maximum customer-facing interest rate for availing loan facilities under the Export Facilitation Pre-finance Fund (EFPF) shall be 4%, and through paragraph 10, that scheduled banks must pay interest at a rate of 1.5% to the Bangladesh Bank against the pre-finance fund availed.

3. Now, in order to maintain consistency with the market-based interest rate policy effective from 01 July 2023, the following instructions are issued regarding the determination of interest rates for providing new loan facilities under the EFPF: (a) The customer-facing interest rate shall be maximum 5%; (b) Participating Banks (PBs) must pay interest at a rate of 2% to the Bangladesh Bank against the pre-finance fund availed.

4. In case any bank defaults in repayment according to the approved repayment schedule from this fund, the bank shall pay interest at the bank rate for the period of default.

5. Furthermore, other instructions mentioned in BRPD Circular No. 01/2023 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 come into force immediately.

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