In a significant move to bolster the country’s export earnings and ensure a steady flow of foreign currency, the Bangladesh Bank on Thursday extended the tenure of the Export Facilitation Pre-finance Fund until December 31, 2030. 

To this end, the central bank issued a circular on the day detailing the extension of the fund which was originally set to expire soon. 

The decision comes in response to ongoing global economic volatility and the specific needs of the readymade garment and other export-oriented sectors to maintain growth and production levels.

Under the new circular, the Tk 10,000 crore fund, created from the central bank’s own resources, will operate as a revolving fund until the end of 2030.

Loans will be distributed to borrowers through participating commercial banks on a ‘first-come-first-serve’ basis.

To promote fair distribution, a single company or industrial group is limited to a maximum of Tk 200 crore from the fund at any one time.

For a scheduled bank to offer these loans, it must first sign a participation agreement with the central bank’s Banking Regulation and Policy Department-1.

To ensure transparency and effective fund management, the Bangladesh Bank has mandated strict reporting schedules.

The circular includes saying that participating banks were required to submit quarterly reports detailing the distribution and recovery of funds within 15 days of the end of each quarter, specifically in April, July, October and January.