Bangladesh Bank (BB) has reduced the interest rate on loans from its Export Development Fund (EDF) by 1% to boost exports.
“It has been decided that interest rates on EDF loans to Authorized Dealers (ADs) will be charged by Bangladesh Bank at six-month USD LIBOR (London interbank offered) plus 0.50%, while ADs will charge interest to manufacturer-exporters at six-month USD LIBOR plus 1.50% for disbursements until June 30, 2020,” according to a BB circular issued on Tuesday.
Earlier, ADs were charged by Bangladesh Bank at six-month USD LIBOR plus 1%, with the ADs charging at six-month USD LIBOR plus 2.50% on their USD loan disbursements to manufacturer-exporters.
