The Bangladesh Bank on Tuesday raised the limit of foreign currency loans for knitwear manufacturers and exporters from the central bank’s export development fund to $20 million from $15 million.
The BB said in a circular issued that mill member of the Bangladesh Knitwear Manufacturers and Exporters Association would from now on get $20 million from EDF for input procurement.
The central bank hiked the loan limit for the knitwear markers following a plea submitted by the BKMEA in which it demanded that the BB should raise the limit to $25 million from the previous $15 million to bring parity between apparel makers and knitwear markers.
In a letter to BB governor Fazle Kabir on January 5, the BKMEA said that the central bank in a circular issued in May, 2018 raised the EDF loan limit for the members of the Bangladesh Garment Manufacturers and Exporters Association and Bangladesh Textiles Mills Association to $25 million from $20 million.
However, the knitwear exporters were unable to get the benefits of the raised loan ceiling as the BKMEA was not named in the circular, it said.
The EDF was launched in 1989 to facilitate access to low-interest financing in foreign exchange for input procurements by manufacturerexporters, and the current size of the fund is $3.5 billion.
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