/ Businesses will now get up to three years for payment: BB

Bangladesh Bank (BB) has relaxed rules on import of capital machinery by industries under buyer’s credit in order to facilitate long-term investment.
Earlier, industries could import capital machinery under a 360-day usance term, the central bank said.
Now banks can allow industrial importers to bring in capital machinery on usance term for up to three years under supplier’s or buyer’s credit, the BB in a notification today.
Buyer’s credit is a short-term loan provided by an overseas lender such as a bank or financial institution to finance the purchase of capital goods and services by an importer.
“We have relaxed the rules of capital machinery import for the benefit of small and medium firms,” said a senior official of the central bank.
The banking regulator’s decision comes after a meeting of the scrutiny committee on foreign loan/supplier’s credit chaired by the BB governor.
To stimulate long term investment, it has been decided that revised usance tenure shall also be applicable to capital machinery imports by industrial enterprises operating in export processing zones (EPZs), private EPZs, economic zones and hi-tech parks and other areas designated as specialised zones by the government, the BB said in the notification.