Photo: Collected. The money drawn under the Export Facilitation Pre-financing Fund (EFPF) has a one-time repayment rule along with interest at the end of the term. It has been relaxed by the central bank. Henceforth, EFPF can pay the full or partial amount before the expiry of the term if the bank wants.
On Wednesday, the Banking Regulations and Policy Department of Bangladesh Bank issued a circular in this regard and sent it to the Managing Director and Chief Executive Officer of all banks operating in the country.
The circular issued on January 1 this year regarding the coordination of funds taken under the EFPF states that Bangladesh Bank will provide pre-financing facilities to the participating banks for a maximum period of 180 days (six months), regardless of the term of the loan at the customer level. One time payment with interest. Besides, the bank loan for pre-financing will be deducted from the current account of the participating bank maintained in Bangladesh Bank at the end of the period given for pre-financing with one-time deduction along with interest. Under the new guidelines, the bank can repay or adjust the amount borrowed in full or in part before the end of the term to reduce the interest cost against the bank money for pre-financing under EFPF. In case of partial adjustment, the remaining unpaid portion shall be paid with one-time interest or profit at the end of the stipulated period. Besides, other instructions issued earlier will remain unchanged.
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