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EDF loan ceiling reset as per IMF condition

UNB . Dhaka
09 Apr 2023 21:37:08 | Update: 10 Apr 2023 07:55:59
EDF loan ceiling reset as per IMF condition

The 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 implementing 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 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.