Payback time on capital machinery imports extended 360 days
Accordingly, banks may allow their eligible importers to extend the maturity period for the import of capital machinery up to the authorised period in line with this decision
The Bangladesh Bank has extended the payment due dates for the import of capital machinery by 360 days.
In a circular on Thursday, the central bank said the extension will be applicable for 360 days from the existing authorised usance period for first-time approvals. The usance or usage period refers to the time allowed for the payment of foreign bills of exchange, according to law or commercial practice.
Accordingly, banks may allow their eligible importers to extend the maturity period for the import of capital machinery up to the authorised period in line with this decision.
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A senior official of the Bangladesh Bank said, "We have come to know that as the number of refinancing cases in capital machinery imports has increased, it is becoming difficult for the Bangladesh Investment Development Authority (Bida) to maintain them."
"Besides, the dollar supply and exchange rate is not going very well now, so importers are not able to pay their dues. Therefore, the deadline for import LC payments has been extended 360 days," he added.
He said, as standard usage practice, import LCs opened till 31 December 2022 will have till 31 December 2023 to repay. However, as a result of this latest directive, banks themselves will be able to extend the pay back terms for another one year.
"As such, this payment due time can be extended to 31 December 2024, at most," according to the central bank official.
