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Four Beximco Companies Default On $25.43 Million EDF Loan - BIZDATA INSIGHTS

Four Beximco Companies Default on $25.43 Million EDF Loan

Industry: Building Material, Financial, Pharma
Company: Beximco Group
Company Intelligence Tag: Business Insights

Four companies from the Beximco Group owe a total of $25.43 million to Bangladesh Bank’s Export Development Fund (EDF). Springful Apparels owes $12.26 million, Pink Maker Garments $8.53 million, Autumn Loop Apparels $4.36 million, and Platinum Garments $0.28 million. Due to this non-repayment, the EDF loan facility for Janata Bank has been suspended since November 7, 2022. The EDF was established to provide low-interest loans to exporters for importing raw materials, but many loans have faced issues with export dollar repatriation. As of July 15, the EDF’s outstanding balance was $2.4 billion, down from $7 billion previously. The central bank has reduced EDF’s outstandings due to IMF disclosure mandates. The non-repayment issue is attributed to political influence and irregularities, leading to loans being converted into term loans and sometimes remaining unrecovered. Bangladesh’s foreign exchange reserves decreased to $20.41 billion as of August 14, 2024.

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