FBCCI Urges BB to expand EDF raise borrower limits

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FBCCI Urges BB to expand EDF raise borrower limits

B Mirror Report: The Federation of Bangladesh Chambers of Commerce and Industry today urged Bangladesh Bank to expand the Export Development Fund (EDF) and raise the single borrower exposure limit to better support businesses.

The request was made during a meeting between FBCCI leaders and BB Governor Md Mostaqur Rahman at the central bank headquarters in Dhaka.

Speaking to journalists after the meeting, FBCCI Secretary General Md Alamgir said the EDF, established to support exporters, has declined sharply from around $7 billion to nearly $2.2 billion. He added that the chamber recommended a gradual increase rather than an immediate jump to $5 billion.

Alamgir also urged the central bank to lower the bank rate to ease borrowing costs and stressed the importance of maintaining a stable exchange rate.

Referring to the governor’s remarks, he noted that there is little likelihood of a rise in the US dollar rate as banks currently have adequate dollar liquidity, and he expressed optimism that inflows would remain strong.

Regarding lending limits, Alamgir said the current single borrower exposure cap is 15 percent and proposed raising it to 25 percent to facilitate larger business financing. He also emphasised the need to safeguard borrowers of Sammilito Islami Bank, noting that ensuring businesses remain operational is essential for timely loan repayments.

 

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