FBCCI urges BB to increase EDF, raise single borrower exposure limit
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) today urged Bangladesh Bank (BB) to increase the size of the Export Development Fund (EDF) and raise the single borrower exposure limit to support businesses. The apex trade body made the call at a meeting with BB Governor Md Mostaqur Rahman at the central bank headquarters in the capital.
Speaking to journalists after the meeting, FBCCI Secretary General Md Alamgir said the EDF, created to support exporters, has significantly declined in size. "Previously, the EDF stood at around $7 billion, but it has now come down to nearly $2.2 billion. We did not propose increasing it to $5 billion at once; rather, we suggested that the fund be expanded gradually," he said.
Alamgir also said the FBCCI urged the central bank to reduce the bank rate to ease business operations, stressing the importance of maintaining a stable exchange rate. Referring to the governor's remarks, he said there is little likelihood of an increase in the US dollar rate, as banks currently have adequate dollar liquidity. He also expressed optimism that US dollar inflows would remain strong in the near future.
Regarding lending limits, he said the current single borrower exposure limit stands at 15 percent, and the FBCCI proposed raising it to 25 percent to facilitate larger financing for businesses. He further emphasised the need to protect borrowers who have taken loans from Sammilito Islami Bank, noting that businesses must remain operational to ensure loan repayment.
