Bangladesh Bank (BB) has included the members of the Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) in the list eligible for its low-cost Export Development Fund (EDF).

The central bank Monday issued a guideline on the limit of borrowing from the export development fund in form of foreign exchange by the authorised dealer (ADs) banks.

In the circular, issued by the Foreign Exchange Policy Department (FEPD) of the central bank, set the borrowing limit for ADs up to $1 million from to finance import of raw materials by mills under BGAPMEA for local deliveries of garment accessories to manufacturer-exporters against inland back to back letter of credit (LC).

Earlier in December 22, 2009, the central bank allowed the ADs to borrow from the EDF against their foreign currency loan to the mills under Bangladesh Textile Mills Association (BTMA) to make bulk import of raw cotton and other fibers against deemed exports.

The latest circular reads, an EDF loan to an AD against their foreign currency financing of input imports of BGAPMEA member mills, shall not exceed (i) the value realised in foreign exchange against inland back to back LCs over the past 12 months, or (ii) $1. million, whichever is lower.