Home » Bangladesh Publication » Circular No. 05 dated 19 March 2023 issued by the Foreign Exchange Policy Department of the Bangladesh Bank on “Repayment of Loans obtained from the Export Development Fund (“EDF”)”
Circular No. 05 dated 19 March 2023 issued by the Foreign Exchange Policy Department of the Bangladesh Bank on “Repayment of Loans obtained from the Export Development Fund (“EDF”)”
March 31, 2023In order to stop the long delays in the repayment of EDF loans, the Bangladesh Bank will charge penalty interest (compensation under Shariah-based Islamic banking) at 4% above the prevailing interest rate to authorized dealers (“AD”) on all overdue EDF loan repayment amounts for the period they are overdue.
In addition, the circular specifies that when applying for an EDF loan, ADs must submit a debit authorization form to the Bangladesh Bank so that it can obtain payment of the principal and accrued interest, including penalty interest or compensation.
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