Monday, 2 October, 2023

BB issues guideline on long-term financing facility

  • Staff Correspondent
  • 17 July, 2023 12:00 AM
  • Print news

Bangladesh Bank issued a guideline on long term financing facility (LTFF) directing the commercial banks to continue the scheme support to private sector firms, mainly the export-oriented manufacturing industries.

The Financial Sector Support and Strategic Planning Department (FSSSPD) of the central bank released a circular in this regard on Sunday.

The circular outlined operating guidelines governing the operation, implementation procedures of the fund and eligibility criteria of the PFIS.

The financial institutions recently “successfully” completed the LTFF programme under Financial Sector Support Project (FSSP),

The aim of this programme is to generate employment, promote growth of the industrial sector and foster real output of the economy.

This aims to adopt sustainable means of digital transformation of the Fourth Industrial Revolution (4IR) in Bangladesh, said the circular signed by FSSSPD Director Liza Fahmida.

Name of this financing facility would be Bangladesh Bank Long Term Financing Facility (BB-LTFF).

This will be offered in US dollars to the authorised dealers of foreign exchange in Bangladesh for on-lending or refinancing to the exporters, enterprises and other private sector firms in the country.

The circular further mentioned that loans disbursed by the banks to their clients on or after 01 January, 2021 will be eligible for refinancing.

“To this effect, this financing would be provided to the eligible banks, namely the Participating Financial Institutions (PFIs), for on-lending/refinancing to the eligible firms,” added the latest directive of the central bank.

Interested banks may apply to the financial sector support and strategic planning department for participating in this financing facility.