gladesh Textile Mills Association (BTMA) and Bangladesh Dyed Yarn Exporters Association (BDYEA). Zakir Hossain Chowdhury, deputy general manager of FEPD, said interest rate for borrowing from EDF is lower than lending rate charged by local banks. “ADs can lend clients by borrowing from the new financing facility at the rate of LIBOR (London Inter-bank Offered Rate) plus 2.5 percent, which includes 1 percent for AD banks.” Commercial banks’ lending rate is around 15 percent, which is a key challenge for BTMA and BDYEA member mills to run manufacturing and yield profits from exports, Zakir added. As per the EDF provision, interest for borrowings by newly entitled industries from ADs will be 3 to 4 percent, he observed. “Our objective is to raise exports by promoting local industries.” The circular says BTMA member mills will get loan for bulk import of raw cotton and other fibres against deemed exports. BDYEA members will also get loan for bulk import of unprocessed yarn and chemicals for processing yarn for local deliveries to manufacturers and exporters against back-to-back LCs in foreign exchanges. “The loan amount won’t exceed the value realised in foreign exchange against inland back-to-back LCs over the past 12 months or $15 million—whichever is lower,” reads the circular. As usual, this limit will be applicable as a single borrower exposure limit. Other terms and conditions will follow the earlier circular issued on December 22, 2009. The official concerned said borrowers will get a comfortable period of six months for repayments as per the EDF policy. “Usually, exporters can mobilise export receipts by six months.”
Thursday, September 25, 2014
EDF credit for textile mills to boost exports:Daily Sun
gladesh Textile Mills Association (BTMA) and Bangladesh Dyed Yarn Exporters Association (BDYEA). Zakir Hossain Chowdhury, deputy general manager of FEPD, said interest rate for borrowing from EDF is lower than lending rate charged by local banks. “ADs can lend clients by borrowing from the new financing facility at the rate of LIBOR (London Inter-bank Offered Rate) plus 2.5 percent, which includes 1 percent for AD banks.” Commercial banks’ lending rate is around 15 percent, which is a key challenge for BTMA and BDYEA member mills to run manufacturing and yield profits from exports, Zakir added. As per the EDF provision, interest for borrowings by newly entitled industries from ADs will be 3 to 4 percent, he observed. “Our objective is to raise exports by promoting local industries.” The circular says BTMA member mills will get loan for bulk import of raw cotton and other fibres against deemed exports. BDYEA members will also get loan for bulk import of unprocessed yarn and chemicals for processing yarn for local deliveries to manufacturers and exporters against back-to-back LCs in foreign exchanges. “The loan amount won’t exceed the value realised in foreign exchange against inland back-to-back LCs over the past 12 months or $15 million—whichever is lower,” reads the circular. As usual, this limit will be applicable as a single borrower exposure limit. Other terms and conditions will follow the earlier circular issued on December 22, 2009. The official concerned said borrowers will get a comfortable period of six months for repayments as per the EDF policy. “Usually, exporters can mobilise export receipts by six months.”
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