B Mirror Report: Bangladesh Bank has introduced a new financing facility for local suppliers serving export-oriented industries, allowing banks to purchase or discount usance or deferred bills in foreign currency before maturity under back-to-back letters of credit (LCs).

The central bank issued a circular on Tuesday outlining the new directive.

According to the circular, banks will be allowed to purchase or discount accepted usance or deferred bills subject to customer-bank relationships, standard banking practices, and proper due diligence. This means local suppliers will be able to receive payments in foreign currency before the bill’s maturity date.

The move is expected to particularly benefit local suppliers in the ready-made garment sector by easing working capital pressure and improving cash flow management through faster access to funds.

Until now, the facility was available only for usance bills related to imported goods. With the latest directive, locally supplied goods under back-to-back LCs have also been brought under the facility’s coverage.

Industry stakeholders believe the measure will strengthen the domestic supply chain and provide greater financial flexibility to export-linked local businesses.