Bangladesh Bank resets EDF loan ceiling as per IMF condition

BTJ Desk Report
Bangladesh Bank further curtails Export Development Fund by $200m

Bangladesh Bank (BB) has reset the ceiling of the loans in US dollars from the Export Development Fund (EDF) to manufacturers and exporters for input procurements.

The central bank took the decision to implement the guidelines of the International Monetary Fund (IMF) with a view to stopping a further fall in foreign currency reserves.

The foreign exchange policy department of BB on Sunday issued a notification in this regard and sent it to the top executives of the banks for immediate execution.

The circular stated that Bangladesh Bank has decided to reset the ceiling to $10 million from $15 million for input procurements under back-to-back LCs (BBLCs) against relevant export orders.

The limit for imports under BBLCs by individual member mills of BGMEA and BKMEA is set at $20 million and $15 million, respectively, including $15 million for individual exporters of leather goods and footwear sectors.

In addition, the maximum eligible limit for bulk imports by a member of the Bangladesh Textile Mills Association (BTMA) has been kept unchanged at $20 million, where it was slashed for a member of the Bangladesh Dyed Yarn Exporters Association to $10 million from $20 million.


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