Bangladesh's export trade will enjoy various policy supports for six more months under a renewal aimed at helping boost country's overall business activities, officials say.
The central bank has extended the tenure of its supports as the country takes more time for economic turnaround.
The exporters will now enjoy the facilities until June 30 this year instead of December 31 last year, according to a notification issued Thursday by the Bangladesh Bank (BB.
Under the policy supports, import of industrial raw materials, back-to- back imports, and imports of agricultural implements and chemical fertilizers under supplier's/buyer's credit can be extended up to 270 days from 180 days. It was 360 days up to December 31, 2021.
EDF (Export Development Fund) loan to individual member mill of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Textile Mills Association (BTMA) will remain unchanged at US$30 million instead of US$25 million, according to the notification.
The latest BB policy extension came just two days after a meeting of a BGMEA delegation, led by its president Faruque Hassan, with BB governor Fazle Kabir in Dhaka.
Earlier on 30 December last year, the issues were discussed at a meeting with the country's top business leaders, according to the officials.
Talking to the FE, a senior BB official said the central bank extended its policy support further to give some extra comfort to the exporters-at this trying time stemming from disruptions caused by the coronavirus pandemic.
"We've extended our policy supports further considering higher prices of raw materials, including raw cotton, in the global market in recent months," the central banker says explaining.
Such back will help the exporters offset the adverse impact of the higher prices of the raw materials on their businesses, according to the BB official.
Mohammad Hatem, executive president of BKMEA, welcomed BB's latest move, saying that it would help boost the country's overall export earnings further in the near future.
"The central bank has also assured the business leaders at the meetings of providing extra policy support on a case-to-case basis, if necessary," Mr Hatem said while replying to a query.
He adds: "We've also urged the BB to enhance the limit of EDF scheme to meet the higher prices of raw materials in the global market."
Earlier on May 17, 2020, the BB enhanced the loan limit under the EDF scheme from $25 million to $30 million for the BGMEA and BTMA members for input procurement.
The EDF financing allows manufacturers to procure inputs or raw materials against back-to-back import letters of credit (LCs) or inland back-to-back LCs in foreign exchange to produce final output for direct export and local delivery to manufacturers of final export.
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