Relaxed conditions on credit guarantee scheme for exporters

Bangladesh Bank has relaxed the condition of the export guarantee scheme of loan for local exporters to stem the negative effect of Covid-19 pandemic.

A circular has been issued by the Bangladesh Bank in this regards.

Central bank sources said exporters recovered from the impact of the pandemic due to relaxed conditions.

Exporters were bound to submit nine documents to get scheme loan which included descriptive loan sheet, the original statement of loan, information about the original loan payment guarantee letter, copy of export session, commercial invoice of debentures, bill of landing, airway bill or cargo receipt, bill repertoire, exporting party.

From now on exporters will only require submitting five documents and the respective banks will review these papers for providing loans.

Meanwhile, Bangladesh Bank has formed at low interest export guarantee scheme of 5,000 crore taka.  A circular has been issued on April 13 to monitor the financing of the scheme. BB is lending at 3 percent interest rate while other banks will lend at 6 percent interest rate from this scheme.

ask/nm