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Cenbank extends usance term for capital machinery imports

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  The central bank has also ordered an extension of loan tenures for institutions with existing medium and short-term agreements to import capital machinery while prohibiting any increase in interest ra

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The Bangladesh Bank has extended the repayment period for foreign exchange loans used for importing capital machinery from 18 months to 36 months, as announced in a circular on March 27, 2023. This decision aims to ease the financial burden on importers amidst global economic challenges, including the Russia-Ukraine war and the ongoing effects of the Covid-19 pandemic. The extension applies to both new and existing loans, with the condition that the machinery must be imported within the original 18-month period. This move is part of broader efforts to support industrial growth and economic stability by providing more flexible financing options.

Read the Full tbsnews Article at:
[ https://www.tbsnews.net/economy/banking/cenbank-extends-machinery-import-foreign-exchange-loan-tenure-1007331 ]