Bangladesh Bank (BB) has issued guidelines for Post Import Financing (PIF) and asked banks to follow them for giving their clients facilities against imports of commodities and industrial raw materials on credits.
Under the new guidelines, duration of PIF will be based on the client-bank relations for both import of commodities and industrial raw materials but such duration will not be more than 90 days for commodities and 180 days for industrial raw materials, said a BB circular on Sunday.
The circular said policy should clearly state the applicable collateral for the provision of debentures and PIF benefits. Also for the purpose of setting up a loan in favour of the customer and approving the loan under delegation (borrower based unit / capital).
All banks must follow the central bank’s credit risks management guideline and internal credit risks rating system for giving loans against import of commodities and industrial raw materials.
For rescheduling the PIF facilities, banks will be able to reschedule the facilities for maximum 30 days against import of commodities and 60 days against industrial raw materials, said the BB circular.
Banks will have to create a separate unit named 'PIF Monitoring Unit' for issuing credits, recovery and supervising it. All related banking rules and procedures must be followed in giving credits and their recovery.
Appropriate rules and regulations for approval and disbursement of loans under PIF will regularly monitor whether it is being observed.
This instruction will be effective immediately. The instruction was issued under the powers conferred by Section 45 of the Banking Companies Act, 1991.
