Importers given more time for clearing payments

Bangladesh Bank yesterday extended the timeframe to repay import payments for industrial raw materials, including back-to-back imports, agricultural implements and chemical fertilizers.

The imports, which were made under the supplier's and buyer's credit, will be allowed to enjoy the support, according to a central bank notice.

The importers will be able to enjoy the benefit until December 31 this year.

Under the suppliers' and buyers' credit, importers usually have to settle such import payments within 180 days, but the central bank has been allowing importers to do so within 360 days ever since the coronavirus pandemic.

Buyers' credit finance means finance for payment of imports arranged by the importer (buyer) from a bank or financial institution outside Bangladesh. The suppliers' credit means credits extended for imports directly by the overseas supplier instead of a bank or financial institution.

A Bangladesh Bank official said the country has been facing a foreign exchange crisis for months, which is why the central bank has extended the facility.

If the importers can settle their import payments later, the foreign reserves, which have been under pressure for long, will get a little bit of breathing space, the official added.