BB slashes interest rates on EDF loans significantly

Dhaka, Bangladesh (BBN)– The central bank of Bangladesh has slashed interest rates on loans under Export Development Fund (EDF) scheme significantly to facilitate export trade due to COVID-19 related disruptions.

Under the revised interest rates policy, exporters will be able to borrow from the low-cost scheme at an interest rate of 2.0 per cent instead of six-month US Dollar (USD) London Inter-bank Offered Rate (LIBOR) plus 1.50 per cent, which equated to nearly 3.0 per cent interest rate.

While authorized dealer (AD) banks will get such loans from the Bangladesh Bank (BB) with paying 1.0 per cent interest rate instead of six-month USD LIBOR plus 0.50 per cent earlier, according to a notification, issued by the central bank recently.

The size of EDF has been enhanced by nearly 67 or US$2.0 billion to $5.0 billion from $3.0 billion earlier to help the country’s exporters for boosting their business activities.

BBN/SSR/AD

No Subscription? You Are Missing Out!

Join the business leaders of Bangladesh who rely on BBN's original reporting and in-depth analysis on business scenario of the country. We send only one daily email. No Spam Guaranteed!

Your Name (optional)

Your Email (Required) *

Subscribe

Please check your email and confirm your subscription