BB extends tenure of policy support for foreign trade

The Bangladesh Bank on Thursday extended the tenure of a policy support it had granted at the outset of the Covid-19 pandemic for readymade garments and textile businesses in their export and import trade.

On March 19 this year, the central bank granted the policy support for six months ending on September 30 for all sorts of import and export trade.

According to the latest circular, the facility will remain valid until March 31, 2021.

Thursday's circular allowed bankers to extend the period for realisation of the export proceeds by up to 90 days in addition to the stipulated four months' timeframe from the date of shipment. As a result, proceeds realisation time will stand at seven months.

In March, the central bank allowed the lenders to extend the period of realisation of the export proceeds by up to 60 days in addition to the stipulated four months' timeframe from the date of shipment.

Other facilities, which were granted in March, will remain unchanged, the BB circular said.

The central bank circular in March also extended the tenure of the export development fund (EDF) loans to six months – from its original tenure of three months.

It also allowed the exporters to repatriate their export proceeds at up to 10 percent discount price on the freight on board value.

Besides, the usance of back-to-back letters of credit (LCs) opened under the supplier's or buyer's credit can be extended on banker-customer relationship by up to six months in addition to the permissible period of six months.

Regarding the submission of import bills of entry, banks were allowed to extend the tenure of the bills by up to two months in addition to the existing four months' time from the date of payments.

Apart from the policy supports, the government has launched a number of stimulus packages for businesses to get over the fallout brought on by the Covid-19 pandemic.

Meanwhile, export-oriented industries have received around Tk7,500 crore from the government's fund to pay wages to their workers for April, May and June.

Besides, the loan disbursement to large industries has exceeded Tk7,000 crore under the Tk30,000 crore stimulus fund.