The Bangladesh Bank on Tuesday tightened provisions for borrowers, who were looking to get fresh loans under a Tk10,000 crore export facilitation pre-finance fund (EFPF), if they fail to repatriate export proceeds.
In a circular, the central bank said that it was found that companies or the individuals or firms concerned who secured loans under the Export Development Fund (EDF) against shipment orders but failed to bring home the export proceeds were still accessing credit facilities under the EFPF.
But if export bills, or export proceeds, remain unrepatriated even after taking loans under the EDF or the EFPF, the companies or related individuals or firms will not be eligible for any fresh loans against the export orders under the EFPF, stated the circular.
Earlier on January 1, the Bangladesh Bank rolled out the EFPF in order to help exporters gear up their business. Under the scheme, an exporter is allowed to take a loan to the tune of a maximum of Tk200 crore from the fund.
The borrowers would be able to access new loans under the new fund, even if they fail to repatriate their export bills on time for unforeseen reasons.
In such situations, the exporters will have to repay at least 50% of their overdue payments before enjoying the loan facility.