EEF Circular Letter No. 01: Amendment of ESF Policy-2018

Bangladesh Bank Head Office Motijheel, Dhaka-1000 Bangladesh. Ref. No. EEF Cir. No. 01/2021

EEF Unit EEF Circular Letter No. 01/2021 Date: 19 Joishtha, 1428 Bangabda 02 June, 2021 AD

To, All Executive Directors/Managing Directors, All Scheduled Banks and Financial Institutions in Bangladesh and ICB Capital Management Ltd.

Dear Sir, Re: Amendment of ESF Policy-2018.

Reference is drawn to your attention to EEF Circular Letter No. 01/2020 (Amended ESF Policy) issued on 27 September, 2020 AD/12 Ashwin, 1427 Bangabda on the subject cited above.

In order to clarify the matter of imposition of penalty interest in paragraphs 8.7 and 25.1 of the said policy, the following amendments are introduced:

Paragraph No.	Existing Instructions	Amended Instructions
8.7	... If an installment is not paid on schedule, an additional 2% penalty interest will be imposed.	... If an installment is not paid on schedule, an additional 2% penalty interest will be imposed on the outstanding (due) amount.
25.1	... If an installment is not paid on schedule, an additional 2% penalty interest will be imposed. However, if a project wishes, it can repay the loan amount taken within the grace period/moratorium period.	... If an installment is not paid on schedule, an additional 2% penalty interest will be imposed on the outstanding (due) amount. However, if a project wishes, it can repay the loan amount taken within the grace period/moratorium period.

All other instructions of Circular Letter No. 01/2020 dated 27 September, 2020 shall remain unchanged.

You are requested to acknowledge receipt and advise all concerned parties accordingly.

Yours faithfully, (Parimal Chandra Chakraborty) General Manager EEF Unit, Bangladesh Bank Head Office, Dhaka Phone: 9530212 Copy to: eef.unit@bb.org.bd