Bangladesh Bank (BB) has extended the tenure of the relaxation of foreign exchange regulations for trade transactions from June 30, 2021 to December 31, 2021 considering the ongoing situation caused by Covid-19 pandemic.
“The central bank has been decided to continue the policy supports till December 31, 2021,” as per a BB circular issued on Monday.“Authorised Dealers (ADs) may allow exporters to extend the tenure of relaxation of export proceeds to December 31, 2021 from June 30, 2021, as additional time from specified period from the date of shipment, for bona fide grounds,” the circular added.
The circular also said the usage period of back to back LCs opened under supplier’s or buyer’s credit can be extended, on banker-customer relationship, within the admissible rate of interest up to 180 days, as additional time from permissible period of 180 days, for bona fide grounds required to settle the payments.
Bangladesh Bank will consider applications for extension of EDF loans for up to 180 days from the prevailing extendable tenure of 90 days, to settle the payments against such loans on bona fide grounds.
Considering the coronavirus pandemic, the BB has extended the policy support to recovery the economic shocks and encourage the export sector, the circular added.
Now the time for repatriation of export proceeds is extendable to 180 days instead of 120 days from the date of shipment.
The loan from Export Development Fund (EDF) is extendable to additional 180 days to December 31, 2021 instead of 90 days for the period up to June 30, 2021.