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BB cuts EDF interest rate further

Staff Correspondent | Published: 21:19, Oct 28,2020

 
 

The Bangladesh Bank on Tuesday lowered the interest rate on loans from the export development fund by 0.25 percentage points to bring some ease for the exports in the context of falling interest rate in the global market.

BB issued a circular in this regard lowering the EDF fund interest rate at 1.75 per cent from 2 per cent.

BB said that the reduced interest rate would remain effective until March 31, 2021.

From now on, banks will get loans from the central bank at the rate of 0.75 per cent that the banks will have to disburse to the eligible customers at the rate of 1.75 per cent.

The BB lowered the rate afresh within few months of lowering the rate to 2 per cent in April this year immediately after the outbreak of coronavirus.

In April, the central bank also enhanced the EDF size to $5 billion from $3.5 billion.

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