Export Development Fund
BB allows textile mills to take up to $12m
Bangladesh Bank on Thursday said that member mills of Bangladesh Textile Mills Association and manufacturer-exporters in the garment industrial sector would be able to borrow up to $12 million a year instead of $10 million from the $300 million export development fund of the central bank.
To this end, the BB issued a circular to authorised dealer branches of all scheduled banks saying that they (AD branches) would be able to borrow up to $12 million a year instead of $10 million from the EDF fund against their foreign currency financing input procurement for member mills of Bangladesh Textile Mills Association and manufacturer-exporters.
The BB circular also said that from now on, member mills of Bangladesh Plastic Goods Manufacturers and Exporters Association would be able to borrow up to $0.5 million from the EDF fund.
A BB official told New Age on Thursday that the AD branches would claim the fund from the EDF after they financed the businesspeople concerned.
He said that the manufacturer-exporters, who usually manufactured garment products like fabrics and other accessories and exported the products to the local garment industries, would get the loan facility from the EDF fund.
He said that the member mills of BPGMEA would be able to avail the opportunity considering that they usually import raw materials for delivering garment accessories locally to manufacturer-exporters against inland back to back LCs in foreign exchange.
The BB issued a separate circular on February 10 saying that member mills of Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association could borrow up to $1 million a year from the EDF fund.
EDF loan disbursements to ADs will be charged at an interest rate of six-month USD LIBOR+1 per cent, with the ADs charging at six month LIBOR +2.5 per cent on their USD loan disbursements to manufacturer-exporters.
-With New Age input
