Bangladesh Bank has revised the usance period for the import of industrial raw materials and agricultural inputs, tightening credit terms to streamline import transactions.
In a circular issued on Sunday, the central bank set the usance period at up to 270 days or the importer’s cash conversion cycle, whichever is shorter.
The move replaces earlier instructions under which the usance period for industrial raw materials, back-to-back imports, agricultural implements and chemical fertilisers imported under suppliers’ or buyers’ credit was allowed for up to 360 days until 31 December 2025.
Bangladesh Bank said the revised limit represents a tightening of those facilities and instructed authorised dealers to exercise due diligence when permitting such arrangements.
Authorised dealers must ensure that the estimated cash conversion cycle used to determine the usance period reflects a realistic position, based on each customer’s historical operating performance and transaction patterns, the central bank said.
For back-to-back letters of credit, Bangladesh Bank directed that the usance period must be aligned with the statutory timeframe for repatriation of export proceeds.
The central bank clarified that the extended usance facility will not apply to imports financed under the Export Development Fund.
Authorised dealers have been asked to immediately inform their relevant clients of the updated regulations.
