Bangladesh Bank relaxes rules to aid industrial import

The central bank has relaxed its regulations, allowing the banks to extend usance period in import of industrial raw materials by their clients up to maximum one year instead of the existing six months.

"We've relaxed our regulations to facilitate local industries that are now facing troubles due to supply chain disruption, caused by the coronavirus outbreak," a senior official of the Bangladesh Bank (BB) told the FE while explaining the main objective of the latest measure.

In foreign trade, usance is the allowable period of time, permitted by customs, between date of the bill and its payment.

"With a view to minimising COVID-19 pandemic-related disruptions to input imports by industrial importers, it has been decided to allow the authorised dealers to extend the usance period up to a maximum of 360 days instead of the current 180 days, depending on the actual needs of their clients concerned," the BB said in a notification on Monday.

Such relaxation will continue until September 30 of this year, according to the notification.

On the other hand, the banks have been allowed to provide advance payment of maximum US$ 500,000 or equivalent in other foreign currencies without repayment guarantee for import of coronavirus-related life-saving drugs, medical equipment and other essential medical items.

Such relaxation will continue until September 30, according to another notification, issued by the BB on the same day.

Currently, the banks are allowed to effect advance payment up to $10,000 or equivalent in other foreign currencies against admissible import, it added.

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