No loans from taka fund if EDF export proceeds not repatriated, exporters told
Bangladesh Bank has been reducing borrowing from the Export Development Fund (EDF) to boost reserves. The bank has decided that exporters who took loan assistance from EDF but have not repatriated the proceeds from exported goods will no longer be eligible to receive any financing from the Export Facilitation Pre-finance Fund.
The central bank has observed that many exporters, who took loans from the EDF, have not repatriated export proceeds but are taking fresh loans from the Export Facilitation Pre-finance Fund. The central bank has issued a notification declaring that this will no longer be allowed.
It has been reducing borrowings from the EDF to boost reserves. The fund has been reduced from $7 billion to $5.2 billion. Along with this, the central bank formed the Tk10,000 crore Export Facilitation Pre-Finance Fund to facilitate the liquidity situation of exporters. Exporters can take loans from this fund for importing raw materials.
As per the new guidelines, any contractor receiving funding benefits from the pre-financing fund shall not repatriate the export value against the specified export. Recently, it has been observed that the organizations willing to take the funding facilities are related companies or belong to the same group. It has been decided that in case the export value remains unreimbursed after receiving the funding benefits by the concerned exporter as well as the exporter’s affiliates or affiliated entities/companies against their fresh export orders, then no benefits will be available.
