BB extends loan rescheduling facility for jute exporters till Dec 31

Business Report :

Bangladesh Bank (BB) has extended a loan rescheduling facility for raw jute exporters till December 31, 2025, allowing them to reschedule loans for the next two years with a two percent down payment based on their outstanding loans as of December 31, 2024.

To this end, the central bank on Monday issued a circular saying that the instruction has been given in response to difficulties faced by exporters in fulfilling the requirements of earlier measures designed to resolve the existing problems within the raw jute export sector.
The new directive is effective immediately and was issued under the authority provided by Section 45 of the Bank Company Act, 1991.

It should be noted that the central bank had previously issued a circular on March 31, 2024, which required raw jute exporters to submit their applications for loan rescheduling within six months from that initial circular’s issuance date.

Though Bangladesh is the global top raw jute exporter country, the traders have faced difficulties in exporting the item in the last few years.
The traders of this sector said production costs have increased while export prices have stagnated in the global market.

Sector insiders said outdated technology and old machinery have decreased the productive efficiency of the industry. Inefficient management and corruption have led to operational losses. Along with a lack of investment in modernization and innovation has made the industry less competitive.