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EDF loan limit for Bangla garment-textile units raised
18 May '20
1 min read
Pic: Shutterstock
The Bangladesh Bank yesterday extended the lending limit for garments and textile factories from the export development fund (EDF) to $30 million from $25 million earlier. Member units of the Bangladesh Garment Manufacturers and Exporters Association and the Bangladesh Textiles Mills Association will be enjoy the benefit, a central bank circular said.
The extended loan facility will be effective till December 31 depending on the actual needs of the concerned mills, according to Bangla media reports.
The loan limit for members of the Bangladesh Knitwear Manufacturers and Exporters Association from the fund, however, remains unchanged to $20 million.
On April 7, the bank expanded the size of the EDF to $5 billion from $3.5 billion in line with the government’s efforts to tackle the economic impacts of the COVID-19 crisis. It also slashed the interest rate for the loans under the EDF to 2 per cent from 2.73 per cent to back exporters.
The EDF was started in 1988 with $30 million, which gradually increased over the years. Banks can borrow funds in US dollars from the EDF against their foreign currency loans.
The extended loan facility will be effective till December 31 depending on the actual needs of the concerned mills, according to Bangla media reports.
The loan limit for members of the Bangladesh Knitwear Manufacturers and Exporters Association from the fund, however, remains unchanged to $20 million.
On April 7, the bank expanded the size of the EDF to $5 billion from $3.5 billion in line with the government’s efforts to tackle the economic impacts of the COVID-19 crisis. It also slashed the interest rate for the loans under the EDF to 2 per cent from 2.73 per cent to back exporters.
The EDF was started in 1988 with $30 million, which gradually increased over the years. Banks can borrow funds in US dollars from the EDF against their foreign currency loans.
Fibre2Fashion News Desk (DS)
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