Regulatory Alerts2024-09-01
Added · Updated
FEPD Circular No. 15: Interest rate on borrowing from Export Development Fund (EDF)
Bangladesh Bank amends the interest rate structure for Export Development Fund (EDF) loans, replacing the previous fixed rates with variable benchmarks. Effective immediately, the interest rate charged by Bangladesh Bank to Authorized Dealers (ADs) is set at Secured Overnight Financing Rate (SOFR) plus 0.5% per annum, while ADs must charge manufacturer-exporters at SOFR plus 1.50% per annum. All other existing instructions regarding EDF remain unchanged.
Bangladesh Bank Head Office Dhaka. www.bb.org.bd FE Circular No. 15 Date: September 01, 2024 Managing Director/CEOs All Scheduled Banks in Bangladesh Dear Sirs, Interest rate on borrowing from Export Development Fund (EDF) Please refer to paragraph 2 of FE Circular No. 02, dated February 01, 2023, in terms of which interest on EDF loan is charged at 3.00% pa by Bangladesh Bank for disbursements to respective Authorized Dealers (ADs) while the ADs are charging at 4.50% against their USD loan disbursements to manufacturer-exporters. 02. Considering the global market trends, it has now been decided that interest rate on EDF loans to ADs will be charged by Bangladesh Bank at Secured Overnight Financing Rate (SOFR) + 0.5% pa, while ADs will charge to manufacturer-exporters at SOFR+1.50% pa. All other instructions on EDF shall remain unchanged. Please bring the contents of this circular, effective immediately, to the notice of your relevant customers. Yours faithfully, (Md. Sarwar Hossain) Director (FEPD) Phone: 9530123 Foreign Exchange Policy Department