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The Bangladesh Bank (BB) has enhanced its re-financing facilities for export-oriented industries that import raw materials to boost country's export, official sources said.
The central bank has already raised the amount of export development fund (EDF) to US$100 million from $38.72 million to encourage establishment of export-oriented industries, the sources added.
Under the existing EDF rules, lending banks will be allowed to invest a maximum of $1.0 million on single export-oriented unit. But the bank may lend more funds from its own NFCD on the basis of bank-client relationship.
The lending banks will be able to invest maximum of 50 per cent of their non-resident foreign currency deposit (NFCD) along with the EDF to meet the exporters' demand, sources in the central bank said.
The BB issued a circular in this connection Sunday last and asked the chief executives of all scheduled banks to follow the instruction on disbursement of the EDF.
Under the new arrangement, the lending banks will have to submit their investment proposals to the general manager (GM) of Forex Treasury Management Department instead of the Department of Off-site Supervision for financing under the EDF.
According to the circular, the interest calculation methodology will remain unchanged but the banks will take one per cent interest as their service charges.
The new system for calculation of the interest for the EDF will come into effect from today (Wednesday), the circular added.
Under the existing provision, the exporters will have to pay interest for the EDF on the basis of six-month term on LIBOR plus one per cent as service charges.
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