Enhanced EDF loan limit extended again

The Foreign Exchange Policy Department of Bangladesh Bank has allowed up to US$30 million from the Export Development Fund (EDF) to individual mill member of BTMA and BGMEA till December 31, 2022.

This is the third extension of the enhanced EDF loan limit till now. The extension was announced through a circular issued on Tuesday.

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Normally, individual loan limit for these associations was up to US$25 million, which was enhanced to 30 million US dollar due to Covid-19 pandemic.

Another circular of the same date said that disbursement of EDF loans is required to be settled out of export proceeds/foreign currency funds held in respective pools.

“Those customers whose EDF liabilities have to be settled through funded facilities against disbursement from July 19, 2022 will not be accessible for further EDF loans," the circular said to banks.

Exporters hailed the new circular and said that it would help to sustain export trade.