$200m added to EDF

The size of the Export Development Fund has been increased by $200 million.

The central bank augmented the fund on Sunday, the bank’s Reserve and Treasury Management Department General Manager Kazi Saidur Rahman said.

“The fund was increased considering the demands of garment sector and other exporters,” he said.

He said some days ago the fund was raised from $600 million to $1 billion, the positive effects of which were already visible in the economy.

“Despite a global recession and the Tazreen and Rana Plaza tragedies, the export sector has grown by 15-16 percent,” Rahman said.

The fund began with $100 million in 2005.

Up to June, the interest on this fund will be Libor (London Inter Bank Offer Rate) plus 0.50 percent. The banks take the fund and loan it out to customers at Libor plus 1.5 percent interest.

Any entrepreneur from the export sector can take loans form this fund.

In the first eight months of this financial year (July-February), export has grown by 14 percent.