Bangladesh Bank raises interest rates for Export Facilitation Pre-finance Fund (EFPF) and pre-shipment credit to align with market trends, supporting exporters.
This strategic move encompasses adjustments to both the Export Facilitation Pre-finance Fund (EFPF) and the pre-shipment credit refinance scheme, showcasing the bank’s dedication to fostering a market-oriented lending environment.
Customers seeking financial assistance from the Export Facilitation Pre-finance Fund (EFPF) will encounter a notable change. The interest rate was previously set at 4%. According to the new guidelines, it touches 5%.
As a result of this enhancement, communicated through an official notice, demonstrates the Bangladesh Bank’s commitment to nurturing the growth of export-focused businesses.
However, the rise in interest rate aims to strike a better equilibrium between borrowing expenses and facilitating financial aid for export-driven endeavors.
The Bangladesh Bank has adjusted the interest rates within the pre-shipment credit refinance scheme. It aligns lending practices with evolving market dynamics.
At the end-borrower’s level, the pre-shipment credit’s interest rate has been adjusted from 3.5% to 5 %. Simultaneously, banks accessing funds via this scheme will now be subjected to a 2 % interest rate, marking a substantial increase from the prior rate of 0.5%.
The Bank designed this recalibration to ensure financing avenues are accessible to exporters. And this remains both attainable and competitive within the financial landscape.
The central bank’s strategic moves fit its mission to support the country’s exporters strongly. As a result, in January, the bank introduced the Export Facilitation Pre-finance Fund (EFPF) to help exporters improve their businesses.
Affordable financing empowers exporters to secure raw materials and strengthen operations.
Also, adjusted interest rates in the pre-shipment credit refinance scheme simplifies funding for procurement, processing, manufacturing, and packaging goods before shipping.
Bangladesh Bank’s moves are part of a broader shift to market-driven lending rates.
Because of that, replacing a 9% cap since April 2020, the bank introduced new rates In June.
BB aims to foster an adaptable lending ecosystem by embracing market changes and nurturing growth.
Recent interest rate adjustments for EFPF and pre-shipment credit show BB’s calculated strategy. This alignment with market trends can offer vital backing to exporters, boosting their business efforts.