Dhaka, Bangladesh (BBN)– The central bank of Bangladesh has included one more sector under its low-cost export development fund (EDF) aiming to facilitate backward linkage industries, officials said. 
 
Under the  new provisions, the mills registered with the Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) will be eligible for the EDF loans along with the mills of Bangladesh Textile Mills Association (BTMA).
 
The Bangladesh Bank (BB) issued a circular in this connection Sunday and asked the commercial banks to provide EDF loan to the members of BGAPMEA. 
 
 “It has now been decided that EDF loans will be available also to member mills of the BGAPMEA making bulk import of raw materials for local deliveries of garment accessories to manufacturers-exporters against inland back to back letters of credit (LCs) in foreign exchange,” the circular said.
 
An EDF loan to a foreign exchange branch, officially known as authorized dealer (AD), against their foreign currency financing of input imports of BGAPMEA member mills, will not exceed  the value realised in foreign exchange against inland back to back LCs over the past twelve months, or  US$ 1.00 million, whichever is lower, according to the circular.
 
BGAPMEA welcomed the BB’s latest move, saying that the new measure would help the emerging sector through providing short-term liquidity support.
 
“It will help reduce the overall cost of production,” President of the BGAPMEA Rafez Alam Chowdhury said, adding that it will also ease the existing financial pressures on the sector.
 
BBN/SSR/AD-11Feb13-11:40 pm (BST)