Export Development Fund enhanced further
BI Report || BusinessInsider
After nearly one year, the Export Development Fund (EDF) introduced and managed by the central bank, has been increased by $500 million to meet the growing demand from the private sector amid the Covid-19 pandemic
After nearly one year, the Export Development Fund (EDF) introduced and managed by the central bank, has been increased by $500 million to meet the growing demand from the private sector amid the Covid-19 pandemic.
Now the size of the EDF stands at $5.50 billion, nearly one-fifth of Bangladesh’s total exports in 2019-20.
“We have increased the fund as per the market demand,” said Kazi Sayedur Rahman, deputy governor of Bangladesh Bank.
Earlier in April last year, the BB enhanced the size of the EDF by $1.5 billion to $5 billion to help exporters tackle the impacts of the coronavirus pandemic.
At that time, the BB also brought down the interest rate on EDF loans by 25 basis points to 1.75 percent so that exporters can get easy money.
Of the interest rate, banks concerned will get 1 percent and the BB the remaining 0.75 percent. Earlier, BB charged interest rate on EDF loan on the basis of a six-month London Interbank Offered Rate plus 1.50 percent.
The central bank launched EDF in early 2000 and up to 2005 its size was only $100 million. The size of the fund increased to $1 billion in 2013.
