Dhaka: Bangladesh Bank (BB) has implemented a new policy stipulating that local delivery bills against back-to-back letters of credit (LCs) will not be classified as overdue for Export Development Fund (EDF) financing, provided they remain outstanding for a maximum of 270 days. The move is designed to harmonize the permissible usance period for back-to-back import LCs with the criteria for determining overdue status.
According to Bangladesh Sangbad Sangstha, the central bank's Foreign Exchange Policy Department-1 issued a circular announcing the decision today. The new directive allows Authorized Dealers (ADs) to approve EDF financing for bulk imports by eligible producers, ensuring that local delivery bills tied to back-to-back LCs stay within the 270-day limit.
The circular aligns with a prior instruction permitting ADs to open back-to-back import LCs on a usance basis for up to 270 days. Previously, Bangladesh Bank had directed ADs to assess the overdue status of deemed exporters before forwarding EDF loan applications to the central bank.
The central bank also clarified that all other guidelines concerning the management of EDF loans, as stated in its July 23, 2026 circular, will remain unaffected.