FEPD Circular No. 16: Disposal of foreign loan/supplier's credit proposals of private sector enterprises

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka. www.bb.org.bd FE Circular No.16 Date: April 6, 2021 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Disposal of foreign loan/supplier’s credit proposals of private sector enterprises Please refer to paragraph 1, chapter 15 of the Guidelines for Foreign Exchange Transactions (GFET)-2018, volume-1 in terms of which short term credit accommodations of up to one year duration from suppliers/buyers abroad are subject to the guidelines/instructions issued by Bangladesh Bank as per Notification No. BOI/R&IM1/4(39)/81(Part)/1209 of Bangladesh Investment Development Authority, BIDA (the then BOI) issued on December 10, 1998. Accordingly, general authorization has been granted to import specified goods on deferred payment basis under supplier’s/buyer’s credit as per stipulation of paragraph 33(a), chapter 7 of GFET and its subsequent circulars. 02. In case of bonafide requirements beyond one year, BIDA will consider to accommodate the requests within the purview of above stated notification as per decision of the 145th meeting of “Scrutiny committee on foreign loan/supplier’s credit in private sector” for extension of usance period/refinancing against permissible deferred imports by importers having registered with them or with Department of Textiles. Accordingly, eligible importers may submit applications to BIDA for extension of usance period/refinancing to be allowed by suppliers/lenders against permissible deferred imports with credit exposure to the importers beyond one year. Applications shall be submitted to BIDA at least 1(one) month before the maturity of concerned deferred imports. Please bring the contents of this circular, effective immediately, to the notice of your concerned clientele. Yours faithfully, (Md. Shahidul Islam) General Manager (Current Charge) Phone: 9530123