Dhaka, Bangladesh (BBN) - The central bank of Bangladesh has allowed the import of industrial raw materials — including back-to-back imports — as well as agricultural implements and chemical fertilisers under suppliers’ or buyers’ credit for a usance period of up to 270 days.
Such facility has been permitted for a usance period of up to 360 days, extended from 180 days earlier, valid until December 31, 2025, officials said.
Under the revised guidelines, the allowable usance period will be up to 270 days or the importer’s cash conversion cycle, whichever is earlier, according to a notification issued by the Bangladesh Bank (BB) on Monday.
Before approving usance facilities, authorised dealer (AD) banks must ensure that the estimated cash conversion cycle reflects a realistic position, based on the customer’s historical operating performance and transaction patterns.
For back-to-back letters of credit, the usance period will be determined in line with the statutory export proceeds repatriation period.
However, the extended usance facility will not apply to imports financed under the Export Development Fund (EDF), the notification added.
BBN/SSR/AD