The joint venture (JV) garment exporting entities operating in the export processing zones (EPZ) can now onwards avail loan from Bangladesh’s central bank.
Media reports maintained this while underlining that Bangladesh Bank (BB) has recently allowed JV apparel exporting companies to take loan from its export development fund even as the Bangladesh Bank, in a circular issued in this direction, maintained that EDF loans would be admissible against back-to-back import letters of credit for procurements of inputs by EPZ-based type ‘B’ industries, which are effectively joint-venture companies, producing apparels for export.
It may be mentioned here that the central bank, which grants funds from its EDF at the rate of 1.75 per cent interest, has decided to extend the facility to the type ‘B’ industries so as to help those entities to offset the economic fallouts of the coronavirus pandemic even as reports claimed interest rate on loans under the EDF will continue till 31 March 2021.
