Extended period EDF loan interest unchanged

The Bangladesh Bank will keep the interest rate unchanged for the extended period of loans made from the Export Development Fund (EDF).

"It has been decided that in case of extension of tenure beyond 180 days, the interest rate prevailing at the time of such extension will be applicable for the extended period," said a BB circular issued on Thursday.

EDF loans from the Bangladesh Bank are repayable by authorised dealer (AD) banks within 180 days from the date of disbursement, extendable up to 270 days. The interest rate on the loans made from the fund is 4.5 per cent.

Established in 1989, the EDF facilitates access to financing in foreign exchange for input procurements by manufacturer-exporters. Authorised dealer banks can borrow US dollar funds from the fund against their foreign currency loans to manufacturer-exporters.