** Road disorder needs proper implementation of law ** 56 hurt in clashes among AL, BNP and cops in Natore, Khulna, Rajshahi ** Bangladesh serves as a model for rest of world: US Asst Secy Noyes ** People crowd the shop of a Trading Corporation of Bangladesh dealer for essential commodities at subsidised prices in Dhaka's Lalbagh on Saturday amid high prices of daily necessities in the market. Agency photo ** Broiler chicken goes up selling at Tk230 a kg, egg price decreases ** Metro rail: Shewrapara, Uttara South stations now open to public ** 35 bodies found inside well after collapse at Indian temple ** Free journalist Shams, repeal DSA: TIB ** Prothom Alo journalist Shams denied bail, sent to jail ** Philippines ferry fire leaves 31 dead, at least 7 missing ** Workers of a readymade garment factory stage a demonstration and barricade the road at Uttara's Jashim Uddin road in the capital on Wednesday demanding payment of their dues. ** Landslide in Cox's Bazar leaves 3 Rohingyas dead ** Liberation war veteran Nur-E-Alam Siddiqui passes away ** Shakib takes five as Bangladesh beat Ireland by 77 runs to seal T20 series ** UNOs’ role as CEO in Upazila Parishads illegal, unconstitutional: HC ** Former MP Nur E Alam Siddique passes away ** Myanmar junta dissolves Suu Kyi's party, much of opposition ** 13 Bangladeshis reported dead in KSA road crash ** 39 dead in fire at Mexico migrant center near US border ** 20 Hajj pilgrims killed in Saudi Arabia accident ** Jasmine’s death in RAB custody not acceptable ** HC wants autopsy report, list of RAB men who grilled Jasmine ** Dhaka commuters face heavy traffic congestion on first working day of Ramzan ** High-rise building catches fire in capital's Katabon ** At Tk 150 per dozen in Dhaka markets, eggs not an affordable protein source any more **

Loan from export dev fund made costlier

02 February 2023

Staff Reporter  :
The Bangladesh Bank (BB) on Wednesday raised the interest rate of the Export Development Fund (EDF) loans by 0.50 per cent in a bid to save the foreign currencies to keep the reserve healthy, pushing the borrowing costlier.
 "It has been decided that the interest rate on EDF loans to Authorised Dealers (ADs) will be charged by Bangladesh Bank at 3 per cent, while ADs will charge interest to manufacturer-exporters at 4.5 per cent for disbursements until further instructions," BB's Foreign Exchange Policy Department issued a circular in this regard on Wednesday.
Earlier, the interest on EDF loan disbursements to Ads was charged by the Central Bank at 2.50 per cent, with the Ads charging at four per cent on their USD loan disbursements to manufacturers and exporters.
The new guideline will be effective from February 1. Currently the size of the EDF is $7 billion.
The BB reduced the interest rate of EDF loans by 2 per cent for the first time in 7 April 2020 during the pandemic.
The EDF is a pre-shipment incentive aimed at preparing, facilitating and supporting exporters to penetrate the global market. The incentive is available to exporters at a reasonably low rate of interest.
Formed in 1988, the EDF started its journey in 1989 in a bid to boost the export oriented industries by providing loan disbursement facilities at low interest rate.
The exporters can receive EDF loans and the repayment has to be made within 270 days. The members of the BGMEA received the highest loan facilities from the EDF.  
The Central Bank has recently created a separate fund with the size of Tk 10,000 crore to assist the exporters.
A total of 49 banks on 30 January signed a deal with BB to receive loans from this newly created fund.
The Central Bank has taken this initiative to redesign the loan scheme for exporters.

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