The size of the Export Development Fund or EDF, which was increased from US $ 5 billion to US $ 5.5 billion in March, has been increased again by US $ 500 million, to reach US $ 6 billion now.
Media reports maintained this while adding the move to increase the size of the EDF from US $ 5.5 billion to US $ 6 billion is primarily aimed at boosting export earnings amidst the coronavirus pandemic, even as the size of the EDF was, reportedly, increased from US $ 3.5 billion to US $ 5 billion in April last year.
It may be mentioned here, members of textile and garment manufacturers bodies (Bangladesh Textile Mills Association, BTMA, Bangladesh Knitwear Manufacturers and Exporters Association, BKMEA, Bangladesh Garment Manufacturers and Exporters Association, BGMEA and other export bodies) receive loans from the EDF, under the back-to-back letters of credit, to import raw materials even if the BTMA and BGMEA members, reportedly, borrow more from the EDF— they can, reportedly, borrow up to US $ 30 million — and their credit limit is also higher hence.
Meanwhile, speaking to the media, Deputy Governor of the country’s central bank (Bangladesh Bank) Kazi Sayedur Rahman, reportedly, underlined the size of EDF is increased to help increase exporters’ competitiveness and grow export earnings amidst the COVID-19 pandemic.
