DHAKA, April 28 (V7N) — In a move to bolster the liquidity of the nation’s export-oriented industries, Bangladesh Bank (BB) today issued comprehensive guidelines for the operation of a Taka 5,000 crore pre-shipment credit refinancing scheme.

The central bank has carved out this Taka 5,000 crore allocation from the existing Taka 10,000 crore Export Facilitation Pre-finance Fund (EFPF). The initiative is specifically designed to ensure a smooth flow of working capital for exporters, helping them meet production and shipping deadlines without financial bottlenecks.

The central bank has communicated the instructions to the managing directors and chief executives of all scheduled banks. To access these funds for their clients, banks must adhere to the following procedural requirements:

Participation Agreement: Banks must execute a formal agreement with the Banking Regulation and Policy Department (BRPD-3) of Bangladesh Bank. This must be done using two sets of non-judicial stamps valued at Taka 300 each.

Application Process: Refinancing applications must be submitted to the Director of BRPD-3. The documentation must include:

Branch-wise summaries of pre-shipment credit.

Customer-wise packing credit details.

A formal letter of authorization.

A declaration confirming that there are no non-compliant overdue export bills associated with the applicants.

To maintain financial discipline, Bangladesh Bank has introduced a mandatory quarterly reporting structure. Participating banks are required to submit detailed reports on the disbursement and recovery of loans.

Reporting Deadlines:

March Quarter: Due by April 15.

June Quarter: Due by July 15.

September Quarter: Due by October 15.

December Quarter: Due by January 15.

These reports must be authenticated by the bank’s MD, CEO, or a designated high-level official. This structured monitoring is intended to prevent fund diversion and ensure that the credit effectively reaches the intended export-oriented sectors.

The scheme comes at a critical time as exporters navigate global supply chain fluctuations and domestic economic transitions. By providing dedicated pre-shipment liquidity, Bangladesh Bank aims to sustain the growth of the export sector—a primary driver of the country's foreign exchange reserves and overall GDP.

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