• Tuesday, Jan 28, 2020
  • Last Update : 05:21 pm

BB relaxes bullet repayment facility

  • Published at 11:38 pm December 4th, 2019
web-Bangladesh bank-bb
The Bangladesh Bank building at Motijheel Mehedi Hasan/ Dhaka Tribune

The latest initiative will allow industrial units to pay off using the bullet repayment facility against any value of shipment of imported goods

The Bangladesh Bank (BB) on Wednesday lifted the repayment ceiling of the bullet repayment procedure under the supplier’/buyer’s credit arrangement to facilitate import transaction.

According to the earlier circular, dated January 9 this year, the bullet payment was applicable to the import of goods in small value, amounting to $0.50 million or equivalent under the supplier’/buyer’s credit that is admissible for a period beyond 6 months but within one year.

The latest initiative will allow industrial units to pay off using the bullet repayment facility against any value of shipment of imported goods.

"We have liberalized import transactions. Now, there will be no bar in repayment. An importer can repay total outstanding amount of shipment value at a time against supplier's/ buyer's credit," Mohammad Khurshid Wahab, general manager at the Foreign Exchange Policy Department, BB, told Dhaka Tribune on Wednesday.

According to Investopedia, a bullet repayment is a lump sum payment made for the entirety of an outstanding loan amount, usually at maturity. A bullet repayment due at a loan’s maturity often necessitates advanced planning to have a refinancing facility in place, unless borrowers have the cash to pay off the large lump sum.