Export Dev Fund
BB doubles borrowing cap for plastic goods exporters
Member mills of Bangladesh Plastic Goods Manufacturers and Exporters Association will now be able to borrow up to $1 million a year instead of $5,00,000 from $1.5-billion export development fund of Bangladesh Bank, the central bank announced on Tuesday.
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 $1 million a year instead of $5,00,000 from the EDF fund against their foreign currency financing for bulk import of raw materials by a BPGMEA member mill.
The BB earlier increased the limit of borrowing by a member mill of Bangladesh Textile Mills Association and manufacturer-exporters from the EDF to $15 million from $12 million.
A BB official told New Age on Tuesday that the AD branches would claim the fund from the EDF after they financed the businesspeople concerned.
The EDF was launched in 2005 with an initial amount of $100 million, which gradually increased to $1.5 billion.
Under the EDF, commercial banks charge exporters the LIBOR (London Interbank Offered Rate) plus 1.5 per cent, meaning, the cost of loans remains within 2 per cent as the six-month LIBOR rate is 0.35 per cent at present.
-With New Age input
