The Bangladesh Bank has increased the loan limit for garment and textile factories from the Export Development Fund (EDF) to $30 million from an existing $25 million. Members of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Textile Mills Association (BTMA) will benefit the most from the new limit.
The enhanced portion - effective for disbursements until December 31, 2020 - shall be considered by foreign exchange dealer banks (Ads) on a case-to-case basis, depending on the actual needs of factories concerned. Exporters will get loans - from the EDF - at 2 percent interest against their raw material imports.
The Bangladesh Bank has introduced the facility as many exporters failed to arrange a buyer's or supplier's credit facility during the novel Coronavirus pandemic - due to supply chain disruptions.
Additionally, giving exporters relief from the interest rate shock during the pandemic is another reason behind granting the facility, said officials at the central bank.
