FEPD Circular No. 19: Usance interest rate against import under supplier's/buyer's credit

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 19 Date: 05/05/2019 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Usance interest rate against import under supplier’s/buyer’s credit. Please refer to paragraph 33(a) and 33(b), chapter 7 of the Guidelines for Foreign Exchange Transactions-2018 (GFET), Vol-1 in terms of which usance interest rate (all-in￾cost) up to 6 (six) percent per annum is permissible against eligible imports under supplier’s/buyer’s credit. 02. Given the prevailing global market situation, it has been decided to set the all-in￾cost ceiling per annum for usance period against imports under supplier’s/buyer’s credit at 6- month LIBOR plus 3.50 percent spread (maximum). The revised rate structure shall continue until further instructions. 03. The above revised rate ceiling shall equally be applicable for discounting of usance export bills as referred to paragraph 25, chapter 8 of GFET. Other instructions in this regard shall stand unchanged. Please bring the above instructions, effective immediately, to the notice of all your concerned clientele. Yours faithfully, (Mohammad Khurshid Wahab) General Manager Phone: 9530123