Bangladesh Bank allows deferred payments for imports of 8 Ramadan products

Cooking oil, chickpeas, pulses, peas, onions, spices, sugar and dates will receive the incentive

Published : 11 Jan 2024, 04:16 PM
Updated : 11 Jan 2024, 04:16 PM

Bangladesh Bank has given traders the opportunity to import eight items for Ramadan on a 90-day credit and allowed for the opening of letters of credit with a minimum margin based on the bank-client relationship, as previously practised.

The central bank approved the imports of edible oil, chickpeas, pulses, peas, onions, spices, sugar and dates on deferred payment terms effective for up to 90 days under the supplier’s or buyer’s credit, according to a notice issued on Thursday.

The facility will remain applicable until Mar 31.

In July 2022, Bangladesh Bank imposed a 75-100 percent cash margin on the import of specific goods while restricting bank loans against these products in an effort to save dollars.

The July circular did not impose restrictions on the import of food and other essential items.

The cash margin rate for opening LCs for essential products, including baby food, continues to be determined by bank and customer relations since June 2023.

This decision aims to support the economic recovery programme and improve the supply chain.

The decision to permit imports on deferred payments was made to ensure a sufficient supply of essential goods before and during Ramadan.