Exporters can repay foreign loans using ERQ fund

Staff Correspondent | Published: 22:34, May 15,2017

 
 

Bangladesh Bank on Monday said that the exporters would be allowed to pay instalments of foreign loans from their respective export retention quota accounts.
The BB issued a circular to authorised dealer branches of all banks saying that from now on an exporter would be allowed to pay his or her company or subsidiary companies’ foreign loan from the ERQ fund.
The exporters earlier paid the instalments of foreign loan converting the local currency Taka to the US Dollar.
ERQ account is the portion of export earnings that an exporter saves as foreign currency.
With this account balance, exporters were earlier allowed to promote their businesses abroad, open liaison office, and cover import cost of raw materials and machineries without needing prior approval of the BB.
A BB official told New Age on Monday that the central bank had taken the initiative to liberalise the country’s foreign exchange regime so that the businesspeople would be able to settle foreign exchange transactions easily.

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