Bangladesh Bank eases post-import financing

The central bank has made post import financing (PIF) easier to keep the import activities of agricultural and daily necessities more stable.

A circular issued by the Bangladesh Bank on Sunday said that PFI has to be done within 210 days from the date of issuing industrial raw material import credit, which was 180 days in the previous policy.

In addition, in the case of imported products in the agricultural (fertilizers, seeds, pesticides, agricultural machinery) and livestock sector, PIF can be made within 180 days at most. The specific products and dates were not mentioned in the previous policy. 

If a customer has overdue previously availed financial assistance, he is not entitled to getting a PIF facility. However, in case of having overdue due to unavoidable circumstances, the customer can take approval from the board of directors, according to the circular.

If there is no scheduled board meeting soon, the board can empower the managing director with special power to decide on the issue but he has to support the decision with reasons to the board in the next meeting.

In case of restructuring or extension of the financing facility provided by a customer, the term may be extended subject to the approval of the board of directors. However, the specified period can be extended only once.

Time can be extended for a maximum of 30 days for daily necessities, 30 days for other products, 60 days for agricultural machinery and livestock products, and 60 days for industrial raw materials.