Exporters to enjoy enhanced credit limit until June 30

FE REPORT

The central bank has extended the period of enhanced credit limit under its Export Development Fund (EDF) scheme for the textiles and clothing exporters by six more months to help boost proceeds from overseas sales.

The members of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Textile Mills Association (BTMA) are eligible to enjoy the enhanced loan ceiling until June 30 of this year instead of December 31 of last year, according to a notification, issued by the Bangladesh Bank (BB), on Wednesday.

"Given the ongoing situation due to Covid-19, it has been decided to continue the enhanced limit of $30.00 million for disbursements until June 30, 2021, to member mills of BGMEA and BTMA," the central bank said in the notification.

On May 17 last year, 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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