IBBL establishes credit guarantee arrangement with USDA

Islami Bank Bangladesh Limited (IBBL) established an arrangement with U.S Department of Agriculture (USDA), USA.

By this arrangement with US Department of Agriculture, USA, Islami Bank Bangladesh Limited will get more opportunities to increase the relationship with US-based financial Institutions, reads a press release.

Moreover, USDA has approved a limit of USD30 million for IBBL.

Importers of the bank will get discounting facilities for a maximum of 18 months from USDA enlisted banks at lower discounting rates.

Furthermore, the exporter’s bank will extend its financing facilities with no requirement of adding confirmation to the irrevocable letter of credit, the press release added.

IBBL will issue a dollar-denominated, irrevocable letter of credit in favor of the U.S. exporter.

The U.S. exporter may get payment from US negotiating Banks after submitting export documents, it reads.

Besides, the exporter is required to provide a report of export to CCC for each shipment that occurs under the payment guarantee.

At maturity of bill, IBBL will make payment to the discounting bank.