BB Opens 90-Day Credit Window for 10 Essentials Ahead of Ramadan

Bangladesh Bank (BB) has opened a 90-day deferred payment facility for imports of 10 essential commodities ahead of Ramadan, aiming to encourage early imports, prevent market shortages and shield consumers from seasonal price hikes during the holy month.

The facility will allow importers to bring in the essential food items without making immediate payments, giving them up to three months to settle import bills after receiving the goods. 

The move is designed to ease financing pressures on businesses and ensure adequate supplies when demand typically surges during Ramadan.

The Foreign Exchange Policy Department-1 of Bangladesh Bank issued a circular in this regard on Wednesday, extending the deferred payment facility to rice, wheat and flour, onions, lentils, edible oil, sugar, chickpeas, peas, spices and dates.

Importers will be able to use suppliers' credit or buyers' credit arrangements to bring in the commodities under the facility.

Bangladesh Bank spokesperson and Executive Director Arif Hossain Khan said the initiative was aimed at keeping essential commodity prices within the purchasing capacity of ordinary consumers during Ramadan.

"We do not want people to face additional pressure from rising commodity prices during Ramadan”, he said. 

“The main objective of this circular is to ensure that ordinary consumers can purchase essential commodities at relatively affordable prices. If importers take the necessary initiatives from now on, it will be possible to maintain a normal supply of goods in the market," Khan told journalists.

He said banks had been authorised to facilitate imports of the 10 commodities under suppliers' or buyers' credit arrangements for up to 90 days, enabling businesses to arrange shipments well ahead of Ramadan and settle payments after the goods arrive.

He explained that prices generally come under upward pressure when demand outstrips supply. The advance import facility is intended to help businesses build adequate stocks before the seasonal surge in consumption.

"If importers can ensure adequate supplies, there will be no shortage in the market, helping reduce upward pressure on prices," he added.

According to the central bank circular, the facility has been introduced specifically for commercial imports to maintain the normal supply of essential food commodities and keep their prices affordable during Ramadan.

Under the arrangement, importers will not be required to pay the full import value at the time of shipment. Instead, they can settle the payments within a maximum of 90 days under the permitted credit arrangements.

The circular noted that certain commodities had previously been allowed under deferred payment terms through Paragraph 1(1) of Part-D of Circular No. 30, issued on August 13.

The latest directive expands the coverage of that facility to include additional essential food commodities ahead of the upcoming Ramadan, giving importers greater flexibility to arrange supplies in advance.

All other instructions contained in the previous circular will remain unchanged.

Bangladesh Bank has instructed all authorised dealer (AD) banks to inform their respective clients about the new directive so that importers can take timely steps to utilise the facility.