Bangladesh Bank Revives Export Refinance Scheme

In a decisive move to bolster the country’s export sector, Bangladesh Bank has re-launched its pre-shipment credit refinance scheme. The initiative comes in response to a request from Federation of Bangladesh Chambers of Commerce and Industry, the nation’s apex trade body, and aims to ensure sustained export growth amid persistent global economic uncertainties.

The scheme, originally introduced in 2020 with a tenure of five years and a fund size of Tk 50 billion, expired on 12 April last year. Recognising its importance to the export-oriented industries, FBCCI leaders appealed for its revival during a meeting with the central bank’s governor earlier this week. Their request was made against the backdrop of geopolitical tensions, particularly those stemming from the Middle East conflict, which have disrupted global trade and heightened economic volatility.

In a circular issued on Thursday, Bangladesh Bank confirmed the re-launch, stating that the initiative is designed to support exporters by maintaining production continuity, enhancing competitiveness, and strengthening foreign currency inflows. The central bank emphasised that the programme will help mitigate the adverse effects of international instability on Bangladesh’s export-driven economy.

Under the revised framework, the refinance scheme will operate as a revolving fund. An allocation of Tk 50 billion has been earmarked from the Tk 10-billion Export Facilitation Pre-finance Fund (EFPF) to support the initiative. The tenure of the scheme has now been extended until 2030, taking effect immediately. This extension underscores the central bank’s long-term commitment to sustaining export momentum and stabilising the country’s balance of payments.

Participating commercial banks will disburse loans to eligible exporters on a ‘first-come, first-served’ basis, ensuring transparency and efficiency in fund allocation. To prevent excessive concentration of financial exposure, Bangladesh Bank has imposed a cap: no individual company or business group may hold more than Tk 2.0 billion from the refinance facility at any given time.

Economists and industry stakeholders have welcomed the move, noting that it will provide much-needed liquidity to exporters, particularly in key sectors such as ready-made garments, leather goods, and agro-based products. By easing pre-shipment financing constraints, the scheme is expected to enhance production capacity, strengthen supply chains, and reinforce Bangladesh’s position in global markets.

Key Features of the Re-Launched Scheme

As Bangladesh continues to navigate an evolving global economic landscape, the revival of this refinance scheme is poised to play a pivotal role in sustaining export resilience and fostering long-term economic stability.