Bangladesh Bank has expanded its pre-shipment credit refinance facility for export-oriented industries from Tk5,000 crore to Tk7,000 crore, while raising the maximum customer-level interest rate on new loans from 5% to 6%.
The central bank announced the decision in a circular issued by its Banking Regulation and Policy Department-1 on Thursday, stating that the measure aims to sustain export operations and bolster foreign exchange earnings amid economic realities.
To facilitate the expansion, the central bank reallocated Tk2,000 crore from its Tk10,000-crore Export Facilitation Pre-finance Fund (EFPF) into the pre-shipment scheme, bringing the remaining balance of the EFPF down to Tk3,000 crore.
Under the revised structure, participating commercial banks can charge end borrowers a maximum interest rate of 6% per annum.
Correspondingly, the refinancing rate charged by Bangladesh Bank to participating institutions has been raised to 3% from the previous 2%, maintaining a 3% margin for the intermediary banks.
Component
Previous Rate / Amount
Revised Rate / Amount
Total Refinance Fund Size
Tk5,000cr
Tk7,000cr
EFPF Remaining Balance
Tk5,000cr
Tk3,000cr
Maximum Interest (Client Level)
5%
6%
Refinance Rate (BB to Bank)
2%
3%
According to the directive, participating banks that fail to repay refinanced sums according to the scheduled timeline will face penalty charges calculated at the prevailing bank rate for the overdue duration.
However, banks have been granted the flexibility to settle their refinanced obligations fully or partially prior to maturity.
All other existing terms and conditions under the scheme remain unchanged, and the new guidelines take effect immediately.
