The Bangladesh Bank on Monday launched a Tk 5,000-crore pre-shipment refinance scheme for the exporter-oriented industries, making loan defaulters ineligible to get access to the fund.
The interest rate on the industries would be highest 6 per cent and the banks would get the fund from the central bank at the rate of 3 per cent interest, said a BB circular issued on the day.
It also said that the global economy had been observing unprecedented stagnancy due to the coronavirus epidemic.
Like the other countries’ exporters, Bangladesh’s exporters also have faced production fall and cancellation of export orders, the BB said.
Prompted by the situation, the BB formed the Tk 5,000-crore refinance fund to support the export-oriented industries by the way of pre-shipment financing to expedite the country’s economy and export earnings, the central bank said.
The BB has formed the fund with its own fund and the industries would get credit only for bearing the pre-shipment costs only.
Any export-oriented sector would be considered as eligible for the fund but the sanctioning of loans would depend completely on the jurisdiction of the bank based on bank-customer relationship.
The tenure of the fund would be three years and would be revolved during the period while the local export-oriented industries would get fund for more than once for the maximum one year.
Besides the defaulters, entities having overdue export proceeds repatriation would not be considered eligible to get the fund.
Banks would be allowed to apply for fund from the scheme against each confirmed export order or export letter of credit and the issuable credit would be determined after the exclusion of back-to-back LC value, financing for accessories and other relevant costs.
However, the exporters would not be entitled to get more than 10 per cent of any consignment or commercial invoice value as loans from the scheme.
Besides, the scheme would not be applicable to export order of any shell company or against LC issued by any shell bank.
While issuing credit for pre-shipment, the banks will have to follow the single borrower exposure limit, said BB, adding that the bank would be fully liable for the repayment.
Amid the outbreak of coronavirus, the central bank has taken a number of measures to support the exporters as well as the small and medium entrepreneurs by the way of enhancing the banks’ lending capacity.
The measure were taken in line with the government announced Tk 77,750 crore stimulus packages to support the businesses to mitigate the impact of coronavirus that has halted the country’s economic activities.
The BB’s policy measures include raising advance deposit ratio, lowering cash reserve ratio and repurchase agreement (REPO) rates.
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