No loans from taka fund if EDF export proceeds not repatriated
The central bank has been reducing borrowing from EDF to boost reserves
Exporters who took loan assistance from the Export Development Fund (EDF) but have not repatriated the proceeds from exported goods will no longer be eligible to receive any financing from the Export Facilitation Pre-finance Fund.
The central bank has observed that many exporters, who took loans from the EDF, have not repatriated export proceeds but are taking fresh loans from the Export Facilitation Pre-finance Fund, a Bangladesh Bank circular said on Tuesday.
The central bank said this will no longer be allowed.
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It has been reducing borrowings from the EDF to boost reserves. The fund has been reduced from $7 billion to $5.2 billion.
Along with this, the central bank formed the Tk10,000 crore Export Facilitation Pre-Finance Fund to facilitate the exporters.
Exporters can take loans from this fund for importing raw materials.
