BB increases export development fund size by $1.5b

The Bangladesh Bank (BB) has increased the Export Development Fund (EDF) size to US$5 billion from $3.5 billion in line with the government’s efforts to tackle the economic impacts for COVID-19, reports news agency BSS.

Exporters will now be able to borrow from the EDF at an interest rate of 2 per cent.

“To facilitate export trade due to COVID-19 related disruptions, it has been decided that interest rates on EDF loans to the Authorised Dealers (Ads) will be charged by the central bank at 1 per cent per annum (pa), while ADs will charge interest rate to manufacturer-exporters at 2 per cent pa, for disbursements until further instructions,” according to a BB circular issued on Tuesday.

The size of EDF has been enhanced to $5 billion, the circular added.

Other relevant instructions will remain unchanged.