Bangladesh Bank comes up with post import financing facility for businesses

Bangladesh Bank today drew up a detailed policy guideline on post import financing (PIF), a first of its kind in the country's banking sector.

Under the PIF, banks will give out loans to importers such that they can pay the cost of exported items within the stipulated time.

Importers have to repay the loans after selling their imported products in the market and the payments have to be cleared within three months for consumer products and by six months for industrial raw materials as per the previous central bank's instruction.

Banks, however, will be allowed to extend the repayment tenure an additional of one month for consumer products and two months for industrial raw materials.

But, banks will have to take approval from their respective board of directors for the extension of the tenure.