SFD Circular Letter No. 04: Refinance Scheme for Pre-Shipment Credit to Mitigate the Crisis due to Novel Corona Virus

Sustainable Finance Department
Bangladesh Bank Website: www.bb.org.bd
Head Office, Dhaka.
August 27, 2020
SFD Circular Letter No. 04 Date: ----------------- Bhadra 12, 1427 Managing Director / Chief Executive All scheduled banks operating in Bangladesh.

Refinance Scheme for Pre-Shipment Credit to Mitigate the Crisis due to Novel Corona Virus.

1. Attention is drawn to SFD Circular No. 01 dated April 22, 2020 regarding the subject matter.
2. Through the said circular, instructions are given to interested banks under the Tk 5,000 (five thousand) crore refinance scheme established in accordance with BRPD Circular No. 09 dated April 13, 2020, to enter into a Participation Agreement with the Sustainable Finance Department of Bangladesh Bank as per Annex-A, and to submit application forms for availing refinance under the scheme. Accordingly, in light of BRPD Circular Letter No. 42 issued on August 23, 2020, and BRPD Circular Letter No. 38 issued on July 22, 2020, SFD Circular No. 01/2020 is amended/revised as follows:
3. Paragraph 3 of SFD Circular No. 01/2020 will be replaced as follows: "Banks that have entered into a Participation Agreement must submit refinance applications (Annex-C) to this Department within the following week of weekly disbursement of pre-shipment credit in the loan sector."
4. Paragraph 4 of SFD Circular No. 01/2020 will be replaced as follows:
   (a) necessary information according to the prescribed table (Annex-E, F); (b) loan disbursement certificates/approval letters; (c) integrated statement of pre-shipment export credit disbursement; (d) copies of relevant export orders/contracts/LCs; (e) customer-wise pre-shipment credit account statements; (f) customer commitment letter that exports will be completed on time as per the relevant export order/contract/LC (certified by the bank); (g) updated CIB report of the relevant customer and updated overdue exporter bill reports; and (h) buyer's credit report by an internationally recognized agency, etc.
5. For each refinance availed, the attached Participation Agreement Form (Annex-G), Pre-shipment Export Credit Application (Annex-H) and Pre-shipment Export Refinance Application (Annex-I) must be provided.
6. Refinance applications must be submitted ensuring raw material procurement through back-to-back LCs against the relevant export order/contract/LC, and in line with their value.
7. Banks must supervise the relevant activities from raw material procurement through back-to-back LCs until timely export completion, and branch offices will retain related reports/documents.
8. Annex-E and Annex-F attached to SFD Circular No. 01/2020 will be replaced by newly drafted Annex-E and Annex-F attached to this circular letter.
9. Except as stated, other instructions of SFD Circular No. 01/2020 remain unchanged.
10. These instructions are issued under the power conferred by Section 45 of the Bank Company Act, 1991.
    These instructions shall take effect immediately.

Yours faithfully,
Enclosure: 05 (five) pages.
(Khandkar Moshed Milsonat)
Chief Manager
Phone: 9530320
Email: sfd.sr@bb.org.bd sfd@bb.org.bd

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Annex-E (Participation Agreement Information Table)

1. Loan Amount	2. Outstanding Balance
City/Town Address	City/Town Loan Amount
Loan Amount for Export Credit (Tk)	Loan Amount for Export Credit
Date: Month: Year:
Bank Name / Branch Manager / Export Credit In-charge	Bank Loan
Bank Loan Disbursement	Bank Loan Balance
Export Credit Loan Disbursement and Export Credit Loan Balance	Export Credit Loan Balance
Participation Agreement Form / Branch Manager/Executive Officer	Export Credit Loan Balance / Participation Agreement Form
(As per Branch Manager/Executive Officer's verification and certification)	Export Credit Loan Balance / Participation Agreement Form

Annex-G (Participation Agreement Application Form)
Bank Name: ....................................................
Branch Name: .................................................
City/Town Address: ............................................
Loan Amount (Tk): .............................................
Outstanding Balance (Tk): ....................................
Export Credit Loan Amount (Tk): .............................
Date: Month: Year: ............................................
Export Credit Loan Disbursement (Tk): ......................
Bank Name / Branch Manager / Export Credit In-charge: .....

Annex-H (Pre-shipment Export Credit Application)
Bank Name: ....................................................
Branch Name: .................................................
City/Town Address: ............................................
Loan Amount (Tk): .............................................
Outstanding Balance (Tk): ....................................
Export Credit Loan Amount (Tk): .............................
Date: Month: Year: ............................................
Export Credit Loan Disbursement (Tk): ......................
Bank Name / Branch Manager / Export Credit In-charge: .....

Annex-I (Pre-shipment Export Refinance Application)
Bank Name: ....................................................
Branch Name: .................................................
City/Town Address: ............................................
Loan Amount (Tk): .............................................
Outstanding Balance (Tk): ....................................
Export Credit Loan Amount (Tk): .............................
Date: Month: Year: ............................................
Export Credit Loan Disbursement (Tk): ......................
Bank Name / Branch Manager / Export Credit In-charge: .....

Annex-E (Revised)
Bank Name: ....................................................
Branch Name: .................................................
City/Town Address: ............................................
Loan Amount (Tk): .............................................
Outstanding Balance (Tk): ....................................
Export Credit Loan Amount (Tk): .............................
Date: Month: Year: ............................................
Export Credit Loan Disbursement (Tk): ......................
Bank Name / Branch Manager / Export Credit In-charge: .....

Annex-F (Revised)
Bank Name: ....................................................
Branch Name: .................................................
City/Town Address: ............................................
Loan Amount (Tk): .............................................
Outstanding Balance (Tk): ....................................
Export Credit Loan Amount (Tk): .............................
Date: Month: Year: ............................................
Export Credit Loan Disbursement (Tk): ......................
Bank Name / Branch Manager / Export Credit In-charge: .....

Annex-E (Final Table)

1. Loan Amount	2. Outstanding Balance
City/Town Address	City/Town Loan Amount
Loan Amount for Export Credit (Tk)	Loan Amount for Export Credit
Date: Month: Year:
Bank Name / Branch Manager / Export Credit In-charge	Bank Loan
Bank Loan Disbursement	Bank Loan Balance
Export Credit Loan Disbursement and Export Credit Loan Balance	Export Credit Loan Balance
Participation Agreement Form / Branch Manager/Executive Officer	Export Credit Loan Balance / Participation Agreement Form
(As per Branch Manager/Executive Officer's verification and certification)	Export Credit Loan Balance / Participation Agreement Form

Annex-I (Final Table)
Bank Name: ....................................................
Branch Name: .................................................
City/Town Address: ............................................
Loan Amount (Tk): .............................................
Outstanding Balance (Tk): ....................................
Export Credit Loan Amount (Tk): .............................
Date: Month: Year: ............................................
Export Credit Loan Disbursement (Tk): ......................
Bank Name / Branch Manager / Export Credit In-charge: .....

Note: The annexes contain fields for Bank Name, Branch Name, City/Town Address, Loan Amount (Tk), Outstanding Balance (Tk), Export Credit Loan Amount (Tk), Date/Month/Year, Export Credit Loan Disbursement (Tk), and signatures of the Branch Manager/Executive Officer and Export Credit In-charge.