Bangladesh Bank has issued a fresh circular revising the usance periods for the import of industrial raw materials and agricultural inputs, in a move aimed at tightening credit terms and streamlining import transactions.
According to the central bank’s latest directive, the usance period for such imports has now been capped at up to 270 days or the cash conversion cycle, whichever is earlier.
The revision marks a rollback from earlier provisions under which the usance period for imports of industrial raw materials, back-to-back imports, agricultural implements and chemical fertilisers—financed through suppliers’ or buyers’ credit—had been extended to as much as 360 days until 31st December 2025. The new limit represents a clear tightening of those credit facilities.
Bangladesh Bank has instructed authorised dealers to exercise due diligence when approving these arrangements. Banks have been directed to ensure that the estimated cash conversion cycle used to determine the usance period reflects a realistic assessment based on each customer’s historical operating performance and transaction patterns.
In the case of back-to-back letters of credit, the central bank has specified that the usance period must be aligned with the statutory timeframe for the repatriation of export proceeds.
The circular also clarified that the extended usance facility will not apply to imports financed under the Export Development Fund.
Authorised dealers have been asked to immediately inform their relevant clients of the revised regulations.
