Bangladesh’s central bank, Bangladesh Bank has launched export facilitation pre-finance fund worth Taka 10,000 crore recently, aimed at supporting the export-oriented entities.
As per reports, the central bank has also issued a circular in this regard on January 1, 2023, and went on to add this amount will be formed from the Bangladesh Bank’s own fund.
Bangladesh Bank’s banking regulations and policy department will manage the fund.
Local export-oriented entities can avail pre-finance facility from the fund for importing raw materials, reportedly claimed the concerned central bank officials even as they added the initiative aims to lessen pressure on its export development fund (EDF) considering the existing dollar crisis on the market.
Reports further added any export-oriented company can apply for the pre-finance facility even as the loans from the fund can be used for import of raw materials through back-to-back letters of credit (LC) of the exporters.
