Regulatory Alerts2022-07-20
Added
FEPD Circular No. 17: Interest rate on borrowing from Export Development Fund (EDF)
Bangladesh Bank increases the interest rate charged to Authorized Dealers (ADs) for loans from the Export Development Fund (EDF) from 1.00% per annum to 1.50% per annum. Concurrently, ADs are required to charge manufacturer-exporters an interest rate of 3.00% per annum on their USD loan disbursements. These new rates apply to all EDF loan disbursements until further instructions and take effect immediately.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka. www.bb.org.bd FE Circular No. 17 Date: July 20, 2022 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Interest rate on borrowing from Export Development Fund (EDF) Please refer to paragraph 2 of FE Circular Letter No. 18, dated April 07, 2020 in terms of which interest on EDF loan disbursements to Authorized Dealers (ADs) was charged by Bangladesh Bank at 1.00% pa, with the ADs charging at 2.00% pa on their USD loan disbursements to manufacturer-exporters. 02. It has been decided that interest rate on EDF loans to ADs will be charged by Bangladesh Bank at 1.50% pa, while ADs will charge interest to manufacturer-exporters at 3.00% pa; for disbursements until further instructions. Other relevant 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