BB expands low-cost fund for apparel exporters
The central bank has increased the limit of the low-cost Export Development Fund for apparel exporters to $20 million from existing $15 million.
"This has been one of our demands," said Siddiqur Rahman, president of Bangladesh Garment Manufacturers and Exporters Association.
BGMEA member factories can borrow from the fund against their letters of credit, firm export contracts or inland back to back LCs, according to a BB letter.
The interest rate on loans from the fund will be LIBOR plus 1 percent. "The enhancement of the fund's limit is a good initiative for us. The garment sector would immensely be benefitted by the central bank move."