The central bank of Bangladesh, Bangladesh Bank, has kept the interest rate unchanged for the extended tenure of loans taken from Export Development Fund (EDF) of it.
According to reports, the central bank has issued a circular in this regard recently even if the same underlined EDF loans from Bangladesh Bank are repayable by authorised dealer banks within 180 days from the date of disbursement, which is extendable by the central bank to up to 270 days even if in case of an extension of tenure beyond 180 days, the interest rate prevailing at the time of such extension will be applicable (for the extended period), it further added.
For information, the EDF was established in Bangladesh in 1989 to facilitate access to financing in foreign exchange for input procurements by exporters-manufacturer even as currently, the central bank charged banks 3 per cent interest while banks, in turn, charged the manufacturers/exporters 4.50 per cent interest.
