Bangladesh Bank has tightened access to its Export Development Fund (EDF), restricting fresh concessional foreign currency loans for exporters who fail to bring export proceeds home within the prescribed period.
Under a revised EDF framework issued on Thursday, manufacturer-exporters that fail to repatriate export earnings within the statutory 120-day period, or within an extended period approved by Bangladesh Bank, will become ineligible for new EDF financing until the overdue proceeds are realised or the delay is formally waived.
The move strengthens compliance pressure on exporters amid continued concerns over delayed export proceeds and foreign exchange management.
The central bank’s master circular consolidated all previous EDF instructions and amendments into a single framework, replacing earlier guidelines.
The revised rules also prevent exporters from accessing new EDF loans if their previous EDF liabilities have been settled through funded credit facilities. Such exporters can regain access only after the overdue export proceeds are repatriated or the delay receives approval from Bangladesh Bank’s Discount Committee.
Banks have also been brought under tighter compliance requirements. Authorised dealers that fail to repay EDF borrowings within the stipulated timeframe will lose access to fresh EDF financing until all overdue obligations are cleared.
The new framework requires applications for extending EDF loan tenures to be submitted at least 10 days before maturity. The requests must be signed by an official not below the rank of deputy managing director and supported by relevant import documents, including Bills of Entry.
The EDF provides foreign currency loans to manufacturer-exporters for importing raw materials and production inputs, helping businesses manage working capital requirements.
Under the revised structure, EDF financing will continue at six-month Secured Overnight Financing Rate (SOFR) plus 0.5 percentage points for banks. Banks will provide the funds to exporters at six-month SOFR plus 1.5 percentage points.
The loan tenure remains up to 180 days, with an extension of up to 270 days available subject to Bangladesh Bank approval.
