Bangladeshi dyed yarn exporters to get credit support from EDF

Bangladeshi dyed yarn exporters to get financial support to help speed up export growth. They will be provided with credit support from Export Development Fund (EDF), a special fund of the central bank.

According to a circular of the central bank, issued on Tuesday, members of the Bangladesh Dyed Yarn Exporters’ Association (BDYEA) will be eligible to get financial support from the EDF.

The size of the credit should not exceed $15 million or the value realised in foreign exchange against inland back to back LCs over the past 12 months, whichever is lower. This funding limit will be applicable as a maximum single borrower limit for the BDYEA members, BB said.

The EDF loans are payable within 180 days from the date of disbursement, extendable by the BB up to 270 days in case of a longer period for repatriation of export proceeds.

The credit, however, will be given only for importing unprocessed yarn and chemicals for processing yarn for local deliveries to manufacturers-exporters against their back to back LCs (letter of credits) in foreign exchange.

BB earlier offered EDF support to leather goods, footwear and ceramic producers and exporters and the members of Bangladesh Textile Mills Association (BTMA) and Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA).