Bangladesh Bank has extended the loan tenure for foreign exchange loans under buyers' and suppliers' credit for importing capital machinery. Industrial entrepreneurs can now secure loans for up to three years, up from the previous one-year limit, reports UNB.
In addition, the central bank has ordered an extension of loan tenures for institutions with existing medium- and short-term agreements for capital machinery imports. It also prohibited any increase in interest rates, ensuring stability for borrowers.
The Foreign Exchange and Policy Department of the BB issued a circular in this regard on Sunday.
It said that this directive, issued to provide additional incentive for the import of capital machinery, will be applicable only to factories within Export Processing Zones, Private Export Processing Zones, Economy Zones, Hi-Tech Parks, and government-declared specialized zones.
To get the benefits, registration with the Bangladesh Investment Development Authority (BIDA) and the Textile Department has been made mandatory.
The Bangladesh Bank directive further states that the 182nd meeting of the Scrutiny Committee on Bidder Foreign Loans or Suppliers Credit chaired by the Governor decided to issue a three-year loan. All the authorised dealer (AD) banks in the country have been instructed to take initiatives in this regard to provide additional incentives for the import of capital equipment.
In a circular issued on Wednesday, Bangladesh Bank announced that the import-dependent industrial sector, which has been impacted by the recent appreciation of the dollar, will now have up to eight years to repay loans. These loans can be repaid on a monthly or quarterly basis, with an option for a one-year moratorium before repayments begin.
Bd-pratidin English/ Jisan
