Market digest

BB extends policy support for import of corona drugs

Staff Correspondent

11 June, 2021 12:00 AM printer

Bangladesh Bank has extended policy support to import corona-related drugs and medical equipment until the end of this year.

The support was due end in June 30, 2021 and now extended to December 31, 2021.

"Given the ongoing situation due to the COVID-19 pandemic, Bangladesh Bank (BB) has decided to continue the policy support till December 31, 2021," the central bank said in a notification on Thursday.

The foreign exchange policy department of the central bank issued the notification keeping unchanged all the policies and regulation mentioned in the earlier circular issued on March 24, 2021.

Under the policy supports, advance payment up to $ 0.50 million or equivalent can be made without repayment guarantee for import of the coronavirus-related life-saving drugs, medical kits, equipment and other essential medical items. The central bank also allowed usance period for input imports by the industrial importers up to 360 days instead of 180 days.

In addition, usance period has been extended up to 360 days instead of 180 days against imports of agricultural implements and chemical fertilizers.

"We have extended the policy supports up to December 31, 2021 to give extra comfort to importers," a BB senior official told the Daily Sun while explaining the main objective of the policy supports.

“For allowable additional time in settlement of import payments, separate permission to extend the validity of Letter of Credit Authorization Form (LCAF), in case of exceeding the stipulate period, will not be required,” the notification stated.