Pre-shipment credit refinance scheme extended until 2030: BB

Bangladesh Bank (BB) has extended the tenure of its pre-shipment credit refinance scheme until December 31, 2030, aiming to ensure continued financing support for export-oriented industries amid persistent global economic uncertainty.

The central bank, through a circular issued today, said the refinancing facility—originally scheduled to expire in April 2025—will now remain available for another five years under a revolving arrangement.

The extension comes as Bangladesh seeks to sustain export growth, maintain production continuity, and strengthen foreign currency inflows at a time when global trade remains affected by geopolitical tensions in the Middle East.

Under the revised arrangement, up to Tk 5,000 crore from the Tk 10,000 crore Export Facilitation Pre-finance Fund (EFPF) will be allocated to refinance pre-shipment credit on a first-come, first-served basis.

All scheduled banks will be eligible to access the facility, although those interested in availing refinancing support must sign a fresh participation agreement with the central bank.

The BB also clarified that the Banking Regulations and Policy Department-3 will oversee the management and administration of the fund and issue operational instructions where necessary.

Banks will have to apply for refinancing within one week of disbursing pre-shipment credit to exporters. If delayed, they may still apply within an additional 15 days by explaining the reasons for the delay.

To improve monitoring, participating banks must submit quarterly reports on loan disbursement and recovery within 15 days after the end of each quarter.

The circular also imposed a ceiling on exposure, stating that no single institution or business group will be allowed to hold more than Tk 200 crore under the scheme at any given time.

Other provisions of earlier circulars issued in 2022 and 2023 regarding the scheme will remain unchanged, the central bank added.