The Bangladesh Bank has relaxed its policy on granting loans to manufacturers-exporters from the export development fund (EDF) with a view to help the businesses absorb the coronavirus-induced economic shock.
In a circular on Thursday, the central bank said that it has taken the decision to facilitate the country's exports during the novel coronavirus pandemic.
Under the relaxation policy, refinancing from the EDF will be admissible in case of no overdue against the realisable export proceeds during the immediate past 720 days from the date of applications by manufacturers-exporters for loans from the fund against the input imports.
As per the central bank's previous provision, input imports of a manufacturer-exporter defaulting in repatriation of export proceeds within the statutory period – within 120 days from the date of shipment or such extension as permitted by the Bangladesh Bank – will not be eligible for financing from the EDF.
Along with the latest policy relaxation, the central bank has so far taken a set of initiatives with a view to revive the country's economy following the coronavirus outbreak here on March 8 this year.
Earlier, when the pandemic had started spreading across the country, the central bank increased the size of EDF and the loan time to facilitate the export sector.