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The Bangladesh Bank on Monday said that the existing policy relaxation would remain effective till December 31, 2021 instead of June 30, 2021 to support export business amid the Covid-outrbeak fallout.
The central bank’s foreign exchange policy department issued a circular in this regard on the day.
Till December 31, the time for repatriation of export proceeds would remain extendable to 210 days from the date of shipment instead of 120 days.
Besides, back-to-back letters of credit opened under suppliers or buyer’s credit will be extendable up to 180 days more within the permissible rate of interest.
Loans from the Export Development Fund would remain extendable to additional 180 days instead of 90 days, as per the BB circular.
Refinancing from the EDF for up to 180 days is allowable in case of justifiable grounds required for settlement of import payments against back-to-back LCs opened under supplier’s or buyer’s credit.
EDF loans to member mills of the Bangladesh Garment Manufacturers and Exporters Association and the Bangladesh Textile Mills Association will be $30 million for disbursement during this period, the circular said.
The circular also allowed banks to continue the settlement of local payments till December 31, 2021 through nostro accounts against the eligible inland foreign exchange transactions.
A BB official said that the central bank extended the policy support up to December 31, 2021 to give extra comfort to export business.
