BB issued a circular and sent this to the chief executives of commercial banks directing to take necessary steps in this regard
Muhammad Ayub Ali: Bangladesh Bank (BB) has further relaxed loan disbursement method from the Export Development Fund (EDF).
From now on, domestic-owned companies in Export Processing Zones (EPZs) as well as joint-owned companies would get loans from the EDF. Bangladesh Bank issued a circular recently and sent this to the chief executives of commercial banks directing to take necessary steps in this regard.
Sources said, the central bank has relaxed the requirement to help industries in all sectors cope with the effects of corona. Earlier, the conditions of EDF have been relaxed on several occasions.
Besides, cent percent domestic-owned or C-type companies in EPZs could import raw materials from export-oriented industries with low-interest loans from the EDF. B-type or domestic-foreign jointly owned companies did not get this facility.
As a result, they had to open LCs for importing raw materials with their country currency as well foreign currency. Many companies are not able to bring export earnings from abroad due to the loss of trade in the international arena including Bangladesh due to Corona.
For this reason, the central bank has extended the deadline for bringing the due export earnings to the country till June 30. Almost all the industrial organizations of the country are suffering from liquidity crisis due to the inability to bring export income to the country. So B-type companies have also been given the opportunity to take loans from the EDF.
Cent percent foreign-owned companies in EPZs have already been relaxed on borrowing from abroad or from their parent company.
They are able to easily borrow from parent companies or abroad to deal with the liquidity crisis. Besides, other export oriented companies are also able to take loans from EDF.