Bangladesh Bank extends deferred payment facility for raw materials and fertilizers imports

Staff Report: PNN

Bangladesh Bank has provided importers additional time for payment of raw materials, agricultural inputs, and fertilizers. According to the new directive, Letters of Credit (LCs) can be opened for deferred payment up to 270 days after receiving goods from foreign suppliers.

Previously, this facility was valid for a specific period up to 360 days. The revised circular specifies that the deferred payment period is 270 days or the importer’s cash conversion cycle, whichever is shorter. The directive will remain permanently effective without a specific expiration date.

Banks must verify importers’ business history, import-export record, and financial transparency before granting the facility. The extended term does not apply to imports financed under the Export Development Fund (EDF). Economists say the move will ease cash flow management for industries and maintain production continuity.