Bangladesh Bank (BB) today tightened credit to rice traders, millers and hoarders for ensuring
adequate supply of rice to the market and bringing down the price at consumers’ comfort level. The central bank in a circular today directed all the banks to adjust the advances to the rice millers and traders in 30 days from disbursements.
Currently, rice millers are allowed to adjust their advances in the form of revolving CC [cash credit] and OD [over draft] in 45 days when the rice traders get 30 days.
The new directive will force millers to sell rice sooner to adjust the loan, which will eventually help increase supply of rice to market, said a BB official.
The BB also issued two more circulars today, one of which limited the ratio of car loan to 50:50.
The other circular made import of equipment for effluent treatment facility (ETF) mandatory for opening letters of credit (LC) for setting up new industries.
It also asked all the banks not to provide existing industries working capitals if they do not have effective effluent treatment facility.
The central bank also directed the banks to consider EFT before financing any industry of BMRE of an existing one.

Source: The Independent