BB raises lending rates for two export support schemes
The central bank has increased the interest rates on loans taken from both the Tk5,000 crore Pre-shipment refinance scheme and the Export Facilitation Pre-finance Fund (EFPF) instituted for export-oriented industries during the Covid-19 period.
The Banking Regulations and Policy Department of Bangladesh Bank issued two separate circulars today (13 August) instructing to increase the interest rate.
As per the new policy, interest rate on pre-shipment refinance loans will be maximum 5% at a customer level.
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As per the earlier policy, this rate was 3.5%.
Besides, the interest rate has also been increased at the bank level from 0.5% to 2%.
At the same time, the customer-level interest rate on EFPF loans has been increased from 4% to 5%.
Besides, banks have to pay 2% interest to the central bank if they want to withdraw money from this fund, up from 1.5%.
According to the circular, the interest rate guidelines have been given for new loans to be in line with the market-based interest rate policy effective from 1 July this year.It is also said that if a participating bank fails to pay the money on time from this fund, it will have to pay interest at the bank rate for that period.
On April 13, 2020, the central bank set up a Tk5,000 crore pre-shipment refinance scheme to stave off the impact of the Covid-19.
Customers could avail such loans to meet the pre-shipment costs of export products.
Banks generally charge 7-8% interest on export loans.
