Written by The Banking Post
Bangladesh Bank on December 29, 2025 issued a circular allowing the import of industrial raw materials – including back-to-back imports – as well as agricultural implements and chemical fertilizers under suppliers’ or buyers’ credit for a usance period of up to 270 days.
The facility for 360 days was previously valid until December 31, 2025. Under the revised guidelines, the permitted usance period will be up to 270 days or the cash conversion cycle, whichever is earlier. Unlike the earlier arrangement, the facility will now remain in force on a perpetual basis, without a specified end date such as December 31.
The circular advised banks to ensure that the cash conversion cycle determined is realistic, based on the customer’s previous business activities and transaction history. In the case of back-to-back letters of credit (LCs), the usance period shall be aligned with the statutory export proceeds repatriation period. However, the extended usance facility will not apply to imports financed under the Export Development Fund (EDF).
Business leaders and industry insiders welcomed the decision, saying no time extension will be required in future.
