Central Bank Revives Export Credit Support

In a strategic effort to strengthen the nation’s export sector, Bangladesh Bank has reintroduced its pre-shipment credit refinance scheme. The decision follows a formal appeal from Federation of Bangladesh Chambers of Commerce and Industry, the country’s apex trade organisation, reflecting the urgent need to support exporters amid global economic uncertainties.

Originally launched in 2020, the Tk 50 billion refinance facility expired on 12 April last year after completing its five-year tenure. Recognising its vital role in facilitating export-oriented industries, FBCCI leaders met with the central bank’s governor earlier this week to advocate for the scheme’s reinstatement. Their request came against a backdrop of ongoing geopolitical tensions, particularly the ripple effects of conflicts in the Middle East, which have disrupted international supply chains and trade flows.

Responding promptly, Bangladesh Bank issued a circular on Thursday confirming the scheme’s relaunch. The central bank emphasised that the initiative is intended to sustain export growth, ensure uninterrupted industrial production, and enhance the inflow of foreign currency at a time when global trade remains volatile. The measure is widely viewed as a timely intervention to safeguard the resilience of Bangladesh’s export-driven economy.

Under the revised framework, the refinance facility will operate on a revolving basis. A total of Tk 50 billion has been earmarked from the Export Facilitation Pre-finance Fund (EFPF) to support pre-shipment financing. Notably, the tenure of the scheme has been extended until 2030 with immediate effect, demonstrating the central bank’s long-term commitment to nurturing the country’s export sector.

Loans will be disbursed to eligible exporters through participating commercial banks on a ‘first-come, first-served’ basis, ensuring fairness and transparency. To prevent excessive concentration of funds, Bangladesh Bank has imposed a ceiling stipulating that no company or business group may hold more than Tk 2.0 billion at any given time.

Experts believe the revived scheme will provide crucial liquidity to exporters, particularly in key sectors such as ready-made garments, leather goods, pharmaceuticals, and agro-processed products. By easing financial constraints during the pre-shipment stage, the initiative is expected to boost productivity, enhance competitiveness, and reinforce Bangladesh’s position in global markets.

Key Highlights of the Refinance Scheme

As Bangladesh continues to navigate an evolving global trade environment, the revival of this refinance scheme underscores the central bank’s proactive approach to sustaining economic momentum. By reinforcing export financing mechanisms, the initiative is poised to support industrial growth, enhance trade competitiveness, and contribute to long-term macroeconomic stability.