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Importers can defer payments for raw materials

BTJ Desk Report
Importers can defer payments for raw materials

Bangladesh Bank allowed local importers to defer payments for foreign credit supports for another six months for industrial raw materials, agricultural equipment and chemical fertilizers, media reported.

Amidst the pandemic-induced risks looming over businesses, the central bank had earlier allowed deferring the payments against supplier’s and buyer’s credit till December this year.

Under the supplier’s credit, foreign suppliers offer credit for a period.

Under the buyer’s credit, foreign lenders make payments to suppliers for which they receive payments at the end of the loan maturity.

But the central bank has allowed deferring payments till June owing to the dollar shortage in the banking sector, said a Bangladesh Bank official.

The reserves stood at $34.24 billion yesterday in contrast to around $45 billion a year ago.

The latest instruction of the central bank will help banks get relief from the ongoing stress on the foreign exchange market, said the official.

Businesses, however, will have to convince the relevant foreign entities over the deferral, said the official.


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