Export refinancing fund raised to Tk 7,000 crore

Bangladesh Bank has increased the fund size of its refinancing scheme for pre-shipment credit to export-oriented industries from Tk 5,000 crore to Tk 7,000 crore. It has also set the maximum interest rate for new loans under the scheme at 6% at the customer level. Participating banks taking refinancing facilities from Bangladesh Bank will pay interest at 3%.
The Banking Regulation and Policy Department-1 of Bangladesh Bank issued a circular on Thursday (October 1) outlining the new instructions. The circular was sent to the managing directors and chief executive officers of all scheduled banks in the country.
According to the circular, the instructions concern an increase in the refinancing scheme for pre-shipment credit and a revision of its interest rates. It referred to previous instructions issued through a circular on May 18, 2022, a circular letter dated August 13, 2023, and another circular letter issued on April 9, 2026.
Earlier, Bangladesh Bank had decided to allocate up to Tk 5,000 crore from the Tk 10,000-crore Export Facilitation Pre-Finance Fund (EFPF), created from its own funds, for refinancing pre-shipment credit. The refinancing allocation has now been increased by another Tk 2,000 crore.
Under the new decision, the refinancing scheme has been increased to Tk 7,000 crore to provide pre-shipment credit to export-oriented industries, help them continue export activities, earn foreign currency and support economic activity. The current size of the EFPF has been set at Tk 3,000 crore.
Bangladesh Bank has also fixed the interest rates for new loans under the pre-shipment credit refinancing scheme. The maximum interest rate at the customer level will be 6%. Participating banks or participating financial institutions (PFIs) receiving refinancing from Bangladesh Bank will pay interest at 3%.
The circular also states that if a participating bank fails to repay funds received from the scheme according to the repayment schedule, interest at the bank rate will apply for the period of default.
The refinancing amount may also be fully repaid before the maturity date. Partial adjustment is also allowed. This means a participating bank may fully or partially adjust the refinancing amount before the scheduled maturity.
Bangladesh Bank said all other terms and instructions under the previous directives will remain unchanged.
The instructions were issued under Section 45 of the Bank Company Act, 1991, and took immediate effect.
The circular said the fund was increased to help keep export-oriented industries operational and ensure necessary pre-shipment financing. The 6% maximum interest rate at the customer level is also intended to keep the cost of the financing within a specified limit.
The decision provides banks with an additional Tk 2,000 crore in refinancing capacity for pre-shipment credit. Banks can now finance export-oriented companies under the expanded Tk 7,000-crore refinancing scheme.
The circular did not set any new separate limits or sector-specific allocations for the amount of credit that particular sectors or companies may receive under the scheme. The other terms and provisions of the previous instructions will continue to apply.