Businesses can now repay EDF loans in three instalments

Businesses can now repay their loans taken from the Export Development Fund (EDF) in three instalments.

They can now make a maximum of two partial repayments and the rest amount will have to be paid at a one-go within the admissible tenure, according to a Bangladesh Bank notice.

The banking watchdog took the decision as some export-oriented businesses have been facing a shortage of the US dollar, said a Bangladesh Bank official.

The relaxation will help the exporters to repay the loan smoothly, he said.

The central bank operates the $7 billion EDF in the form of refinance scheme such that export-oriented industries can procure their required industrial raw materials.

The tenure of the loan is 180 days, which can be extended to 270 days with permission from BB.