BB doubles EDF to $300m
Thursday, 24 December 2009
FE Report
The central bank of Bangladesh has doubled the Export Development Fund (EDF) to US$300 million from $150 million aiming to mitigate export losses inflicted by the global meltdown, officials said Wednesday.
The Bangladesh Bank (BB) has also increased the interest rate on loans from the EDF by 1.5 per cent for the exporters with effect from January 1, 2010.
From January 1 next year, the banks will take loans from the EDF at the London Inter-bank Offered Rate (LIBOR) plus 1.0 per cent interest and will extend credit to exporters at the LIBOR rate plus 2.50 per cent interest, according to a BB circular issued Tuesday.
"We've re-fixed the interest rate on the loans in line with the second stimulus package, announced by Finance Minister AMA Muhith on November 25 last," a BB senior official told the FE.
The government has announced the second stimulus package worth Tk 10 billion for helping the export-oriented enterprises, including textile and readymade garment (RMG) units face the fallouts from global meltdown.
"The central bank has relaxed the rules and regulations relating to EDF loans to add an impetus to the country's export performances," the BB official said, adding that textile mills owners would be eligible for such loans.
The central bank of Bangladesh has doubled the Export Development Fund (EDF) to US$300 million from $150 million aiming to mitigate export losses inflicted by the global meltdown, officials said Wednesday.
The Bangladesh Bank (BB) has also increased the interest rate on loans from the EDF by 1.5 per cent for the exporters with effect from January 1, 2010.
From January 1 next year, the banks will take loans from the EDF at the London Inter-bank Offered Rate (LIBOR) plus 1.0 per cent interest and will extend credit to exporters at the LIBOR rate plus 2.50 per cent interest, according to a BB circular issued Tuesday.
"We've re-fixed the interest rate on the loans in line with the second stimulus package, announced by Finance Minister AMA Muhith on November 25 last," a BB senior official told the FE.
The government has announced the second stimulus package worth Tk 10 billion for helping the export-oriented enterprises, including textile and readymade garment (RMG) units face the fallouts from global meltdown.
"The central bank has relaxed the rules and regulations relating to EDF loans to add an impetus to the country's export performances," the BB official said, adding that textile mills owners would be eligible for such loans.