Regulatory Alerts2023-06-08
Added
SFD Circular Letter No. 01: Refinance Fund for Technology Development/Up-gradation of Export Oriented Industries
The Sustainable Finance Department of Bangladesh Bank amends Circular Letter No. 02 by replacing references to the Export Policy 2018-21 with the Export Policy 2021-24. The circular updates the eligible sectors to include 35 industries under the highest priority, special development, and highest priority service sectors. It also sets the interest/profit rate payable by Participating Financial Institutions to Bangladesh Bank at 1% and the maximum rate for customers at 5%. These directives are issued under the Banking Company Act, 1991, and the Financial Institutions Act, 1993, and take immediate effect.
50119
Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh.
Sustainable Finance Department
Date: 08 June 2023 25 Joishtho 1430
SFD Circular Letter No.- 01
Managing Director/Chief Executive All Scheduled Banks and Financial Institutions operating in Bangladesh
Regarding the Refinance Fund for Technology Development/Up-gradation of Export Oriented Industries.
Dear Sir,
Reference is drawn to your attention to SFD Circular-02 issued on 17 January 2021 on the subject mentioned in the heading.
- In light of the 'Export Policy 2018-21', a Refinance Fund named Technology Development/Up-gradation Fund of 1000 (One Thousand) Crore Taka was established by Bangladesh Bank for the modernization and technological upgradation of the export-oriented industrial sector. With the issuance of the 'Export Policy 2021-2024' by the Government, to comply with the said Export Policy Order and to further facilitate the refinance facility from the aforementioned fund, the following decisions have been taken.
a) The last line of paragraph 6 of the aforementioned circular will be replaced as follows:
"Industries under 35 (Thirty-five) sectors under the highest priority sectors and special development sectors mentioned in the Export Policy 2021-24 and under the highest priority service sectors will be included within the ambit of the aforementioned 11 (Eleven) programs/initiatives."
b) Paragraph 8 of the aforementioned circular will be replaced as follows:
- Interest/Profit Rate Structure: (8.1) The interest/profit rate payable by PFI to Bangladesh Bank will be 1% ; (8.2) The interest/profit rate at the customer level will be maximum 5%.
c) In all paragraphs of the aforementioned circular, 'Export Policy 2018-21' will be replaced with 'Export Policy 2021-24'.
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Apart from this, other instructions of the circular will remain unchanged.
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These instructions are issued under the powers conferred by Section 45 of the Banking Company Act, 1991 (amended in 2018) and Section 18(c) of the Financial Institutions Act, 1993 (amended in 2003). These instructions will take immediate effect.
Yours faithfully,
(Signature) (Chowdhury Liaquat Ali) Director Phone No: 9533620 Email: gm.sfd@bb.org.bd
Phone: 88-02-9550448, 9554896, IP: 88-02-55668001-6, Fax: 88-02-9530479, www.bb.org.bd