Payment rules eased for Covid drug import

The central bank yesterday further extended its policy support for importing medicines for the treatment of coronavirus ailment, industrial raw materials and fertilisers due to a sudden rise in Covid-19 infections in the country.

Banks will have to accept advance payments of up to $500,000 from businesses to import coronavirus-related lifesaving drugs and essential medical items, including kits and equipment, without prior approval from the central bank.

Importers are usually allowed to make advanced payments of a maximum of $10,000 for the import of general items, including raw materials meant for industrial purposes and consumer goods, without prior approval from the banking regulator.

Global drug companies have been refusing to export such items if the payments are not made in advance, said a central bank official.

That is why the central bank further relaxed the rules, which will be applicable until June this year.

In March last year, Bangladesh Bank had taken the decision to ease the policy for the first time.

In the second instruction, the BB extended the one-year timeframe, which was six months before the pandemic's rise, to make import payments for industrial raw materials.

This timeframe relaxation aims to cushion the enterprises such that they will be able to tackle the dull business situation stemming from the coronavirus pandemic.

Many exporters have imported a good amount of raw materials to produce items meant for export, said a central bank official.

In some cases, they are facing hurdles when attempting to export their products in the wake of decreasing global demand.

In an another instruction, the central bank has extended the timeframe to up to 360 days from 180 days against import of agricultural implements and chemical fertilisers.

The importers will also enjoy the support until June 30.