EDF loan limit for garments, textiles factories raised to $30m

Staff Correspondent | Published: 21:20, May 17,2020

 
 

The Bangladesh Bank on Sunday extended the lending limit for garments and textile factories from the export development fund to $30 million from the existing $25 million.

Members of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Textiles Mills Association (BTMA) will be enjoy the new facility, the central bank circular issued on the day said.

The extended loan facility will remain effective till December 31 of this year depending on the actual needs of the concerned mills.

On the other hand, the loan limit for members of the Bangladesh Knitwear Manufacturers and Exporters Association from the fund remains unchanged to $20 million.

On April 7 this year, the central bank expanded the size of the EDF to $5 billion from $3.5 billion in line with the government’s efforts to tackle the economic impacts of the coronavirus crisis.

The BB also slashed the interest rate for the loans under the EDF to 2 per cent from 2.73 per cent in an effort to support the exporters amid the coronavirus outbreak.

The central bank introduced the EDF in 1988 with a size of $30 million which has gradually increased over the years. Banks can borrow funds in US dollars from the EDF against their foreign currency loans.

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