Bangladesh Bank has allowed the authorised dealer (AD) banks to charge an additional one per cent interest on exporters for an interim period against loans under Export Development Fund (EDF).
"To maintain smooth support for input procurements from EDF against export trade, it has been decided that ADs may charge additional interest to borrowers not exceeding 1.0 per cent per annum for the period between 'import payments from sources of ADs' and 'receipts of refinancing from EDF'. As usual, ADs will be charged by Bangladesh Bank at 1.0 per cent per annum against its refinancing from EDF," the central bank said in a circular issued on Tuesday.
The circular said that the ongoing export trend creates a huge demand for input procurements, leading to pressures on EDF loans.