FEPD Circular No. 06: Interest charges for financing during interim period against input procurements under Export Development Fund (EDF)

Authorized Dealers may charge additional interest not exceeding 1.0 percent per annum to borrowers for the period between import payments and receipt of refinancing from the Export Development Fund. Authorized Dealers will continue to be charged 1.0 percent per annum by Bangladesh Bank against its refinancing from the Export Development Fund. This directive applies to financing for input procurements under the Export Development Fund and leaves other relevant instructions unchanged.

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Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Dhaka. www.bb.org.bd
FE Circular No. 06 Date: April 19, 2022
All Authorized Dealers in
Foreign Exchange in Bangladesh
Dear Sirs,
Interest charges for financing during interim period against input procurements under Export Development Fund (EDF) Please refer to FE Circular No. 45, dated December 31, 2017 and its subsequent circulars in terms of which Authorized Dealers (ADs) can borrow US Dollar funds from the EDF against their foreign currency loans to manufacturer-exporters for input procurements. The cost of EDF loans for ultimate borrowers is 2 percent per annum as per FE Circular No. 18, dated April 07, 2020.
02. The ongoing export trend creates huge demand of input procurements, leading to
pressures on EDF loans. To maintain smooth support for input procurements from EDF against export trade, it has been decided that ADs may charge additional interest to borrowers not exceeding 1.0 percent per annum for the period between ‘import payments from sources of ADs’ and ‘receipts of refinancing from EDF’. As usual, ADs will be charged by Bangladesh Bank at 1.0 percent per annum against its refinancing from EDF. Other relevant instructions on EDF shall remain unchanged. Please bring the contents of the circular to the notice of your concerned clientele. Yours faithfully, (Kazi Rafiqul Hassan) General Manager Phone: 9530123

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Source: Bangladesh Bank — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works