FEPD Circular Letter No. 16: Revision of Interest Rates for Long Term Financing Facility

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular Letter No.16 Date: 01 November, 2017 All Authorized Dealers of Foreign Exchange in Bangladesh Dear Sir, Long Term Financing Facility (LTFF) under the Financial Sector Support Project (FSSP) Please refer to FE Circular No. 27 dated November 13, 2016 regarding Long Term Financing Facility (LTFF) under Financial Sector Support Project (FSSP). Considering prevailing interest rate in the international market, it has been decided to revise the interest rate through amendment of the section 9.b of the LTFF Operations Manual issued by the above stated circular as follows: An indicative pricing range of six-month USD LIBOR + 2.00 ~ 3.00 percent would be applicable to the PFIs until further notice according to the following matrix: Tenor PFIs Up to 5 Years Up to 7 Years Up to 10 Years Banks having CAMELS Rating of 1 (One) LIBOR + 2.00% LIBOR + 2.25% LIBOR + 2.50 % Banks having CAMELS Rating of 2 (Two) LIBOR + 2.25% LIBOR + 2.50% LIBOR + 2.75 % Banks having CAMELS Rating of 3 (Three) LIBOR + 2.50% LIBOR + 2.75% LIBOR + 3.00 % In case the PFI is Islamic Shariah-based, then the Islamic Interbank Benchmark Rate (IIBR) will be used for it instead of the London Interbank Offered Rate (LIBOR). The revised rate will come into immediate effect and will be applicable for all existing and future loans of LTFF. Please bring the contents of this circular letter to the notice of all your concerned constituents. Yours faithfully, (Jagannath Chandra Ghosh) Deputy General Manager Phone: 9530092