Export policy support extended till Dec

The policy support for foreign exchange transactions in the export sector will continue till December, says the Bangladesh Bank. 

The facilities, introduced last year as part of measures to recover the economy from Codiv-19 blows, were supposed to end on 30 June.

The Foreign Exchange Policy Department of the central bank said in a circular on Monday the facilities had been extended considering the present Covid-19 situation.

The facilities include additional time to bring in export earnings and borrow from the Export Development Fund (EDF).

Exporters believe extending the facilities will ease foreign trade. They hope to overcome their problems in business by December.

Bangladesh Knitwear Manufacturers and Exporters Association Senior Vice-President Mohammad Hatem told The Business Standard exporters would have been under tremendous pressure if the facilities were not increased in light of the present reality.

He said the move would allow exporters to do business with ease.

"Although the coronavirus situation in some export destinations has improved, the export sector is facing difficulties as buyers have reduced garment prices."

As part of the policy support, exporters have 210 days from the date of shipment to bring in export earnings instead of 120 days.

Back-to-back letters of credit (LCs) opened under suppliers'/buyers' credit can be extended for 180 days within the permissible rate of interest.

Besides, loans can be taken from EDF for 180 days instead of 90 days.

Refinancing from EDF for up to 180 days is allowable under justifiable grounds required for settling import payments against back-to-back LCs opened under suppliers'/buyers' credit.

Each member factory of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Textile Mills Association (BTMA) can borrow a maximum of $30 million from EDF until December.