FE Report
The Bangladesh Bank (BB) has increased the allocation to the Export Development Fund (EDF) to US$150 million (15 crore) from the existing $100 million to meet the growing demand of the country's exporters.
Besides, the central bank has raised the single exposure limit for such re-financing facilities to $1.50 million from $1.00 million to help the exporters in expansion of their business activities.
The new measures will come into effect from November 1, official sources said.
"We have increased the amount of EDF allocation in line with the apparel exporters' proposals," a BB senior official told the FE Monday, adding that the new measures will help boost the export performance.
The central bank issued a circular in this connection Monday and asked chief executives of all scheduled banks to follow the new instructions for sanctioning loans under the EDF scheme.
"The central bank is providing the re-financing facilities to the exporters through commercial banks as a short-term liquidity support," the BB official said.
The BB has already invested around $60 million for the exporters under the EDF, he said, adding that the central bank revised the re-financing scheme to help export-oriented industries.
On September 12 last, leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) made a proposal to the BB to increase the allocation for the EDF to $300 million from the existing $100 million.
They also requested the BB to raise the single exposure limit for such re-financing facilities to $3.0 million from the existing $1.0 million on the basis of the expansionary trend of the apparel sector.
BB raises Export Development Fund allocation to $150m
FE Team | Published: October 30, 2007 00:00:00 | Updated: February 01, 2018 00:00:00
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