BB permits deferred import LCs for up to 360 days

Staff Reporter :

Bangladesh Bank (BB) has extended the payment period for imported raw materials and agricultural inputs from 180 days to 360 days.

The central bank issued a circular on Monday, aiming to conserve foreign currency and maintain supply chains.

According to the circular, the delayed payment limit for imports of raw materials for industries- including back-to-back imports- agricultural inputs, and chemical fertilizers has been increased from 180 days to 360 days.

This move is part of Bangladesh Bank’s efforts to conserve foreign exchange reserves amidst the ongoing dollar crisis.

The extended payment period will remain in place until December. However, the circular clarifies that this provision does not apply to imports under Export Development Fund (EDF) loans.

Previously, the central bank had issued a circular on 30 June last year, extending the delayed payment limit for these imports to 360 days, though the validity was set to expire on 31 December 2024.

Under the new circular, customers are prohibited from extending the payment period for foreign currency liabilities beyond the specified timeframe.

Industry insiders believe that the extension of the payment period will provide relief to the foreign exchange market.