Businessmen involved in import-dependent industries that have suffered losses due to the depreciation of the local currency against the US dollar will get up to eight years to repay their loans.

Only importers who brought over goods on condition of delayed loan repayments and suffered losses will get this opportunity, according to a central bank notification issued yesterday.

The loans will be repaid on a monthly or quarterly basis with a one-year grace period after calculating losses separately, as per the circular.

The central bank said that the value of the taka against foreign currencies, especially against the US dollar, has decreased significantly due to the long-term impacts of the Covid-19 pandemic, the Russia-Ukraine war, and the global economic recession.

So, local manufacturing industries have faced exchange rate losses while importing raw materials. As a result, forced loans are being created, and a working capital deficit is being observed alongside a reduction in the production capacity of these institutions, the central bank said.

Only importers who brought goods on condition of delayed loan repayments and suffered losses will get this opportunity

The central bank issued the directive to maintain the production capacity of import-dependent industries, including the steel and cement sectors as well as local industries whose sales prices are determined by the government.

In line with the instructions, many food importers will get this benefit as the prices of various products, including oil and sugar, are determined by the government.

The Bangladesh Bank also said that the total amount of exchange rate-related losses would be determined by the relevant bank in the case of letters of credit opened from January to December 2022.

The central bank also announced the method to be used to determine the total amount of unexpected exchange rate-related losses.

The amount equivalent to the loss can be transferred as a separate term loan outside the working capital credit limit based on bank-customer relationships after analysing the customer's credit risk.

It will be repayable in equal instalments -- monthly or quarterly -- for a maximum period of eight years with a maximum break of one year.

The central bank added that the single customer credit limit cannot be exceeded in any way and no defaulter will get this facility.

To avail of this opportunity, customers must apply to their respective banks by March 31.

In addition, the bank must confirm whether the customer actually suffered losses due to movement in the foreign exchange rate. The relevant documents must be properly preserved for verification by the inspection department of the Bangladesh Bank.

Over the past couple of years, the exchange rate has increased to Tk 120-125 per US dollar from Tk 105-107 in January last year.

Owing to the increase in the dollar prices, the working capital of import-oriented industries has decreased, according to industry insiders.