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EDF loans for interim period

BB allows banks to charge addl 1pc interest

Published : 19 Apr 2022 10:13 PM | Updated : 20 Apr 2022 02:42 PM

Bangladesh Bank has allowed the authorized dealer (AD) banks to charge additional one per cent interest on exporters for interim period against loans under Export Development Fund (EDF).

"To maintain smooth support for input procurements from EDF against export trade, it has been decided that ADs may charge additional interest to borrowers not exceeding 1.0 percent per annum for the period between 'import payments from sources of ADs' and 'receipts of refinancing from EDF'. As usual, ADs will be charged by Bangladesh Bank at 1.0 percent per annum against its refinancing from EDF," as per a BB circular issued on Tuesday.

The BB notice said that the ongoing export trend creates huge demand for input procurements, leading to pressures on EDF loans.

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