FROM PAGE B1

Refinancing support will be available for industries listed under the highest-priority and special development sectors in the Export Policy 2024-27. Priority will go to producers and exporters using domestically sourced raw materials, particularly in jute and leather.

Financing will be in the form of term loans or investments in local currency. The scheme will run for three years and may include a grace period of up to six months, BB stated in the circular.

Borrowers must maintain a satisfactory credit record. Defaulters will not qualify, and applications will be rejected if export proceeds are not repatriated through the formal banking channel.

Participating banks will also be required to collect updated CIB reports before applying for refinancing support.

According to the BB, many export-oriented industries possess strong growth potential but have failed to expand because of inadequate access to financing. The refinance facility is expected to address this gap and encourage fresh investment in emerging export sectors.

COMPLIANCE AND MONITORING

To access either facility, scheduled banks must sign participation agreements with the BB and meet all risk management and regulatory requirements.

The central bank will monitor fund utilisation through reporting requirements and on-site inspections. Misuse of funds, submission of inaccurate information or non-compliance with scheme conditions could result in cancellation of refinancing facilities and financial penalties, the circulars said.

The central bank expects the two refinance programmes to strengthen access to finance for businesses, support job creation, stimulate production and help build a more diversified and resilient export sector at a time when Bangladesh is preparing for a more competitive global trading environment.