Dhaka, Sept. 16 -- Bangladesh Bank (BB) has issued new instructions to streamline Export Development Fund (EDF) loan applications, aligning the overdue status of local back-to-back Letters of Credit (LCs) with the permissible 270-day grace period (deferred payment).

The central bank's Foreign Exchange Policy Department-1 (FEPD-1) issued a directive to all Authorized Dealers (ADs) in foreign exchange on Wednesday.

According to the circular, signed by FEPD-1 Director (Current Charge) Dr. Md. Abu Bakkar Siddique, Authorized Dealers will now consider EDF financing for bulk imports to eligible producers provided that local delivery bills against back-to-back LCs do not remain outstanding beyond 270 days.

The central bank noted that the deci...