Staff Reporter :
The Bangladesh Bank (BB) has announced an extension of the payment period for imports of industrial raw materials, increasing it from 180 to 360 days.
This arrangement will be maintained until December 2024, as stated in a BB circular issued on Sunday (June 30).
Previously, this facility was set to expire in June of the current year. However, to facilitate trade transactions, the central bank decided to extend the policy support until December 31, 2024.
The circular clarified that the extended usance period will not apply to imports under Export Development Fund (EDF) loans, while other relevant instructions shall remain unchanged.
The usance period is the time permitted by custom between the date of the bill and its payment.
According to the central bank circular, the facility will be applicable to industrial raw material imports, including back-to-back imports, and imports of agricultural implements and chemical fertilisers under buyer’s credit.
Buyer’s credit refers to the credit available to an importer from overseas lenders, such as banks and other financial institutions, for goods they are importing.
The extended usance period will not be applicable for imports under loans from the Export Development Fund, the circular reiterated.