Bangladesh Bank expands low-cost EDF loans to three new export sectors

Exporters must normally repay the fund within 180 days, though the deadline can be extended to 270 days with central bank approval

Three more export sectors will now be eligible for low-interest loans from the Export Development Fund (EDF).

Bangladesh Bank said in a circular on Thursday that bicycle, furniture and frozen food exporters can access the facility.

Until now, the benefit was available to members of BGMEA and BKMEA, representing the garment sector and leather exporters.

The central bank said it updated the EDF master circular to consolidate earlier instructions issued since 2017.

Under the revised rules, authorised dealer banks receive EDF refinancing at six-month SOFR plus 0.5 percent, while exporters can be charged up to 1.5 percent above the benchmark.

Bicycle and furniture exporters can borrow up to $10 million each, while frozen food exporters can access up to $5 million.

Garment exporters under BGMEA can borrow up to $20 million, while BKMEA members can access $15 million.