Regulatory Alerts2023-03-19
Added
FE Circular No. 05: Repayment of loans availed from Export Development Fund (EDF)
Bangladesh Bank mandates that Authorized Dealers (ADs) charge penal interest at 4.00% per annum above the prevailing interest rate on overdue amounts of Export Development Fund (EDF) loans for any delayed period. ADs are required to submit a debit authority to Bangladesh Bank at the time of EDF loan application, authorizing the bank to debit their FC Clearing accounts for principal, accrued interest, and the specified penal interest if loans are not repaid within permissible tenors. This requirement is implemented through a revised Form-A, and the circular takes effect immediately.
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