BB re-launches pre-shipment credit refinance scheme

Bangladesh Bank (BB) has re-launched the expired pre-shipment credit-refinance scheme to facilitate exports in line with the request from the country's apex trade body.
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) made the request in this regard just three days back.
The five-year-tenure refinance scheme involving Tk 50 billion that was initiated in 2020 expired on April 12 last year.
But leaders of the country's apex trade body in a meeting with the BB governor on Monday last made an appeal for resumption of the fund to help boost exports amid ongoing geopolitical tensions following the Middle East war.
The central bank in a circular issued on Thursday stated that the fund has been re-launched for the sake of helping the country sustain its exports growth, maintain production continuity, and strengthen foreign currency inflows at a time when global trade remains have been affected by geopolitical tensions.
Under the revolving arrangement, according to the circular, an amount of Tk 50 billion from the Tk 10-billion Export Facilitation Pre-finance Fund (EFPF) will be allocated for operating the refinance pre-shipment credit scheme, tenure of which is now extended up to 2030 with immediate effect.
Loans from the refinance fund will be distributed among borrowers through the participating commercial banks on a 'First-Come-First-Served' basis, it mentioned.
Regarding the maximum ceiling of exposure, it said no company or business group will be allowed to hold more than Tk 2.0 billion at a single point of time.

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