Dhaka, Bangladesh (BBN) – The central bank of Bangladesh relaxed foreign-exchange regulations allowing all ‘C’- category industries in the Export Processing Zones (EPZs) to borrow from the export-development fund (EDF).
Under the relaxed regulations, the commercial banks are now allowed to extend their foreign-currency loans under the EDF to type-‘C’ industries in the EPZs.
“It has been decided that EDF loan will be admissible against back-to- back import LCs (letter of credit) for input procurement by type-‘C’ industries in EPZs,” the central bank said in a circular on Sunday.
There are three categories of industrial units now operating in all EPZs across the country.
A total of 66 ‘B’-category (joint venture) industrial units are in operation while 135 Cs (100 per cent locally owned) in the EPZs.
Besides, 250 ‘A’-category (fully owned by foreigners) units are now operating in the special zones of the country.
“We’ve relaxed the foreign-exchange regulations aiming to facilitate all C-category industries in the EPZs to avail low-cost EDF loan,” a senior official of the Bangladesh Bank (BB) told BBN in Dhaka.
The central banker also said it will help all such industries located in the EPZs to meet their short-term liquidity requirements.
Earlier on May 27 last, the BB increased the allocation for the EDF by more than 33.33 per cent to US$ 2.0 billion from $1.5 billion to cater a growing demand from exporters.
Currently, the exporters are allowed to get such foreign-currency loan on payment at six months the London Inter-bank Offered Rate (LIBOR) plus 2.50 per cent interest.
BBN/SSR/AD
