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EDF interest rate rise to 4.5%

Staff Correspondent
01 Feb 2023 18:11:05 | Update: 01 Feb 2023 18:12:45
EDF interest rate rise to 4.5%
— File Photo

The Bangladesh Bank has yet again increased the Export Development Fund (EDF) loan interest rate – pushing it to 4.5 per cent – in a bid to tackle the steady decline of foreign exchange reserves by discouraging borrowers.

This new rate will come into effect from February 1, read a circular issued by the Foreign Exchange Policy Department (FEPD) of Bangladesh Bank on Wednesday. Back on November 13, the central bank increased the EDP loan interest rate from 3 per cent to 4 per cent.

On July 20, the regulator had increased the rate from 2 per cent to 3 per cent.