Bangladesh Bank has extended the credit limit of the Export Development Fund (EDF) for readymade garment exporters and textile industry owners.
Now members of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Textile Mills Association (BTMA) can take a maximum of $30 million from this fund. This facility will be available till December next.The country’s central bank on Sunday issued a circular regarding this matter.
The EDF started its journey in 1989 with only $30 million to help the export sector. The amount of this fund has been gradually increased and now it stands at $5 billion.
On April 7 this year, the size of EDF was promoted from $3.5 billion to $5 billion for dealing with the economic damage caused by coronavirus pandemic. Not only that, but the interest rate of this fund has also been reduced to two percent.
The facility has been in effect since April 1 and will continue until further notice.
Apart from the members of BGMEA and BTMEA, exporters of various sectors including leather and leather products, ceramics and pharmaceuticals, also avail loans from this fund.