Regulatory Alerts2022-07-19
Added
FEPD Circular Letter No. 27: Settlement of loans against Export Development Fund (EDF)
Authorized Dealers in Bangladesh are prohibited from forwarding applications for Export Development Fund (EDF) loans for customers whose EDF liabilities were settled through funded facilities within the 180 days preceding the circular's date. Additionally, customers whose EDF liabilities are settled through funded facilities against disbursements from July 19, 2022, onward are ineligible for further EDF loans. These restrictions apply irrespective of the nature of imports, while other relevant instructions remain unchanged.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka. www.bb.org.bd FE Circular Letter No. 27 Date: July 19, 2022 Head offices/principal offices of all Authorized Dealers in Bangladesh Dear Sirs, Settlement of loans against Export Development Fund (EDF) Please refer to FE Circular Letter No. 21, dated June 29, 2022 in terms of which Authorized Dealers are advised to refrain from forwarding applications of EDF loans, irrespective of nature of imports, for customers whose liabilities have been settled through funded facilities in the immediate past 180 days. 02. Disbursement of EDF loans is required to be settled out of export proceeds/foreign currency funds held in respective pools in terms of paragraph 3 of FE Circular No. 45, dated December 31, 2017. It has been decided that those customers whose EDF liabilities have to be settled through funded facilities against disbursement from the date of this circular letter will not be accessible for further EDF loan. Other relevant instructions shall remain unchanged. Please bring the contents of this circular letter to the notice of your relevant customers. Yours faithfully, (Md. Sarwar Hossain) Director (FEPD) Phone: 9530123