The members of the Bangladesh Dyed Yarn Exporters’ Association (BDYEA) will get financial support from Export Development Fund (EDF), a special fund of the Bangladesh Bank, BSS news agency reported.
The funds will be given only for importing unprocessed yarn and chemicals for processing yarn to local manufacturers and exporters, against their back to back LCs (Letter of Credits) in foreign exchange.
The Bangladesh Bank said the funding limit will not exceed US$15 million or the value realized in foreign exchange, against inland back to back LCs over the past 12 months, whichever is lower. This funding limit will be applicable as a maximum single borrower limit for the BDYEA members, according to the central bank.
The Bangladesh Bank earlier offered EDF support to the members of Bangladesh Textile Mills Association (BTMA) and Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA).
The EDF loans are payable within 180 days from the date of disbursement, extendable by the Bangladesh Bank up to 270 days, in case of a longer period for repatriation of export proceeds. (GK)