Forex loan made further cheaper for exporters

Exporters got another boost from the central bank as the latter has made foreign currency loans cheaper now than any time before.

Now exporters can borrow loans from the Bangladesh Bank’s export development fund (EDF) at only 1.75 percent, down from 2 percent.

The latest benefit will continue until March 31, 2021, according to a circular issued by the BB on Wednesday.

Authorised dealer (AD) banks that handle foreign currency on behalf of commercial banks will also get such loans from the central bank at a reduced rate - 0.75 percent instead of present one percent.

On April 07 this year, the central cut interest rates on the EDF loans. Previously, it was set on the LIBOR (London Interbank Offered Rate) plus 1.5 percent interest. Also, the BB increased the size of the EDF to $5 billion from $3.50 billion to help the businesses tackle the impacts of the coronavirus on business.

Exporters welcomed the latest move, which they think would make them more competitive in a time when the global economy is struggling due to the pandemic.

Bangladesh's exports rose by 2.97 percent to $9.70 billion in the July-September quarter of this year from $9.42 billion for the corresponding quarter a year ago.