News Desk: The Bangladesh Bank on Wednesday extended the usance period by three months for the import of industrial raw materials, agricultural implements, and chemical fertilisers under supplier’s or buyer’s credit.
A BB circular issued on the day said that the extended usance period would not be applicable to the imports under loans taken from the export development fund.
In January, the central bank extended the usance period by three months to 270 days from 180 days for the imports under supplier’s and buyer’s credit.
Under the BB’s latest circular issued on the day, the usance period of such credit facility would be 360 days.
Import of industrial raw materials under back-to-back imports will also be considered for the extended usance period.
The extended usance period will be effective till December 31, 2022, the circular said.
In a separate circular, the central bank increased the applicable interest on EDF loans to 3 per cent from 2 per cent to make the buyer’s credit market competitive.
Prior to the revision, the BB was charging banks 1 per cent on the EFD loans and banks were disbursing the same to manufacturers and exporters at 2 per cent.
After the change, the central bank will be disbursing EDF loans to the banks at 1.5 per cent and banks will then issue the same fund to the manufacturers and exporters at up to 3 per cent interest.
The BB introduced the EDF in 1988 with a size of $30 million, which has gradually been increased to $7 billion.