JV apparel exporters in EPZ to get EDF loans

Staff Correspondent | Published: 23:29, Mar 22,2021

 
 

The Bangladesh Bank on Monday allowed joint venture apparel exporting companies operating in the country’s export processing zones to take loans from the BB’s export development fund.

The central bank issued a circular in this regard on the day, saying that EDF loans would be admissible against back-to-back import letters of credit for input procurements by EPZs’ type ‘B’ industries (joint-venture companies) producing readymade garments for export.

Earlier, such loans were only allowed for the local entrepreneurs operating in the EPZs for input procurements under the back-to-back arrangements.

The BB has extended the facility to the type ‘B’ industries to help the entities offset the financial crisis induced by the outbreak of COVID-19, said a BB official.

At present, the BB grants funds from its EDF at the rate of 1.75 per cent interest.

The interest rate on loans under the EDF will continue till March 31, 2021.

In April, 2021 the central bank also enhanced the EDF size to $5 billion from $3.5 billion with a view supporting the exporters following the outbreak of coronavirus.

The central bank on the day issued another circular that allowed usance period up to 360 days for import of empty LPG cylinders by industrial units for their own use.

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