Export-oriented industries eligible to borrow from BB pre-shipment refinance scheme at 6% interest
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Sunday
January 29, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
SUNDAY, JANUARY 29, 2023
Export-oriented industries eligible to borrow from BB pre-shipment refinance scheme at 6% interest

Banking

TBS Report
13 April, 2020, 08:10 pm
Last modified: 13 April, 2020, 09:44 pm

Related News

  • Cry for dollar for Ramadan imports
  • LC situation likely to improve in 2 months: Cenbank governor
  • Cenbank trims EDF by $1b to ease pressure on reserves
  • Alarmed Commerce to blame cenbank for any Ramadan item shortage
  • 60% bank sub-branches must be outside city corporations, municipal areas: BB

Export-oriented industries eligible to borrow from BB pre-shipment refinance scheme at 6% interest

The fund will not apply to defaulters and exporters who are yet to receive their export earnings

TBS Report
13 April, 2020, 08:10 pm
Last modified: 13 April, 2020, 09:44 pm
File Photo: Salahuddin Ahmed/TBS
File Photo: Salahuddin Ahmed/TBS

The Bangladesh Bank has unveiled new liquidity support for export-oriented industries amid a slowdown in external trade in the wake of the coronavirus pandemic. 

In a circular issued on Monday, the central bank said export-oriented industries will be eligible to take loan from its pre-shipment refinance scheme of Tk5,000 crore at maximum six percent interest.

The banks would get the fund from the Bangladesh Bank at three percent interest, it said.

Pre-shipment finance helps exporters meet the packaging and overhead costs before shipping products.

It is a short-term loan for up to six months but no loan defaulters will have access to the fund, officials at the Bangladesh Bank said.

The economic globalisation has come to a grinding halt due to the coronavirus pandemic. Like elsewhere in the world, export order cancellations and production cut are hurting Bangladesh's export earnings too. 

To speed up the country's economic activity and export earnings at this critical point, the Bangladesh Bank formed the Tk5,000 crore refinance fund to support the export-oriented industries with pre-shipment finance, officials at the central bank said. 

The Bangladesh Bank formed the scheme with its own fund and the eligible companies will only get loan against pre-shipment costs. Any export-oriented company will be eligible for the fund but the approval of loans will completely depend on the respective banks, based on bank-customer relationship. 

The duration of the fund will be three years and it will revolve. Plus, the local export-oriented industries will get fund for more than once in a year. 

Defaulters and companies that are yet to receive their export earnings will not be eligible for the fund. 

The banks will be allowed to apply for the fund against each confirmed export order or letter of credit (LC). And the credit issuable will be fixed after the exclusion of back-to-back LC value, financing for accessories and other relevant costs.

However, the exporters will not get more than 10 percent loan, of any consignment or commercial invoice value, from the scheme. 

Also, the scheme will not apply to the export order of any shell company or LC issued by any shell bank. 

While issuing credit for pre-shipment, the banks will have to follow the single borrower limit, said the central bank, adding that the banks will be fully liable for the repayment. 

Amid the coronavirus outbreak, the central bank has taken several measures to support exporters, and small and medium entrepreneurs by enhancing the banks' lending capacity.

The measures were taken in line with the government-announced Tk77,750 crore stimulus packages to support the businesses to mitigate the impact of coronavirus that has halted the country's economic activities.

Of the fund, the government allocated Tk5,000 crore for export-oriented factories to only pay wages and allowance of their workers. 

Bangladesh / Economy / Top News

Bangladesh Bank / Fund / pre-shipment credit

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Getting gas to India will be even more costly than laying this pipe to China.Photographer: Andrey Rudakov/Bloomberg
    Russia can't replace the energy market Putin broke
  • Ex-MD Mehmood Hossain rejoining National Bank
    Ex-MD Mehmood Hossain rejoining National Bank
  • Photo: UNB
    AL won't run away, rather will continue developing Bangladesh: PM in Rajshahi

MOST VIEWED

  • Ex-MD Mehmood Hossain rejoining National Bank
    Ex-MD Mehmood Hossain rejoining National Bank
  • Sonali Bank going to open exchange house in Maldives
    Sonali Bank going to open exchange house in Maldives
  • Infograph: TBS
    State banks spend 80% of their forex for govt imports in H1
  • Cry for dollar for Ramadan imports
    Cry for dollar for Ramadan imports
  • Call money rate hits 7% for first time in over 6 years
    Call money rate hits 7% for first time in over 6 years
  • Bankers' assocs warn banks against buying remittances at higher rates
    Bankers' assocs warn banks against buying remittances at higher rates

Related News

  • Cry for dollar for Ramadan imports
  • LC situation likely to improve in 2 months: Cenbank governor
  • Cenbank trims EDF by $1b to ease pressure on reserves
  • Alarmed Commerce to blame cenbank for any Ramadan item shortage
  • 60% bank sub-branches must be outside city corporations, municipal areas: BB

Features

Nandita Sharmin's journey to give organic skincare a new identity

Nandita Sharmin's journey to give organic skincare a new identity

6h | Mode
Illustration: TBS

'The silver lining is that the worst is sort of behind us': Hamid Rashid, UN economist

10h | Panorama
Photo: Bloomberg

BuzzFeed and AI are a match made in fad city

9h | Panorama
Snipe in flight. Photo: Enam Ul Haque

Baikka Beel: 'A world where snipe work late'

1d | Panorama

More Videos from TBS

Sarika Sabrin is waiting for a good film

Sarika Sabrin is waiting for a good film

23m | TBS Entertainment
Take your football game to the next level at Next Level academy

Take your football game to the next level at Next Level academy

1h | TBS SPORTS
“Investments risky without consistent policy, reliable data”- SK Bashir Uddin

“Investments risky without consistent policy, reliable data”- SK Bashir Uddin

3h | TBS Round Table
What does Shahrukh has in his 770 million dollar property?

What does Shahrukh has in his 770 million dollar property?

23h | TBS Entertainment

Most Read

1
Picture: Collected
Bangladesh

US Embassy condemns recent incidents of visa fraud

2
Illustration: TBS
Banking

16 banks at risk of capital shortfall if top 3 borrowers default

3
Photo: Collected
Splash

Hansal Mehta responds as Twitter user calls him 'shameless' for making Faraaz

4
A frozen Beyond Burger plant-based patty. Photographer: AKIRA for Bloomberg Businessweek
Bloomberg Special

Fake meat was supposed to save the world. It became just another fad

5
Bapex calls candidates for job test 9 years after advert!
Bangladesh

Bapex calls candidates for job test 9 years after advert!

6
Representational Image
Banking

Cash-strapped Islami, Al-Arafah and National turn to Sonali Bank for costly fund

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]