BIDA approval must for refinance against deferred imports

Staff Correspondent | Published at 11:05pm on April 06, 2021

The Bangladesh Bank on Tuesday issued a clarification in regards to the approval of refinance or extension of usance against deferred imports.

A BB circular issued in this regard said that approval from the Bangladesh Investment Development Authority (BIDA) would be required in case of usance period exceeding one year against imports of admissible goods under supplier’s or buyer’s credit.

The requirement would be applicable for importers registered with the BIDA or with the Department of Textiles.

The circular added that eligible importers would file applications with the BIDA at least one month before the maturity of the deferred imports for extension of usance or refinancing to be allowed by suppliers or lenders to importers with credit exposure against permissible deferred imports exceeding one year.

The circular was issued in accordance with the decision of the scrutiny committee on foreign loan or supplier’s credit in the private sector.