Bangladesh Bank (BB) on Monday signed a partnership agreement with 49 banks to ensure adequate liquidity for the export-oriented sector.
Earlier, the central bank had constituted ‘The Export Facilitation Pre-Financing Fund (EFPFA)’ of Rs 10,000 crore to assist the export sector amid the slowdown in global economic growth. Entrepreneurs can borrow from this fund for an interim period before receiving payment from foreign buyers against the order.
Loans will be given to exporters in local currency from the newly constituted fund of Rs 10,000 crore. After taking loans in Taka, they (exporters) can convert them into foreign currency and open an LC. Consequently, it will act as an alternative fund to the Export Development Fund (EDF), where exporters get loans in foreign currency, which acts as a drag on the country’s foreign exchange reserves.