Bangladesh Bank (BB) has asked the banks to fix the interest rate of pre-shipment loans as per the new reference lending rate.
The central bank asked the banks to add a maximum of 2 per cent margin with the reference lending rate, known as the SMART (six-month moving average rate of Treasury bill), when they fix the interest rate of pre-shipment export credits, according to a BB circular issued here today.
The BB took the decision to make the export-oriented companies more resilient against shocks stemming from the ongoing global economic crisis, helping them thrive and ensuring more efficient credit management in the banking sector.
The pre-shipment credit is a loan granted to an exporter for financing the purchase, processing, manufacturing or packing of goods prior to shipment.
In June, the BB introduced the market-driven lending rate for banks and non-banking financial institutions, replacing the 9 per cent lending rate cap that had been in place since April 2020.
If all instalments of a loan or partial instalments are categorised as overdue, a maximum of 1.5 per cent penalty interest can be slapped on the entire loan outstanding of a working capital loan or the instalments of a demand loan that are behind the schedule.
