Central Bank Extended Payment Period for Raw Material Imports

Economic Tag: Central Bank, Import

The central bank has extended the usance period for industrial raw material imports from 180 to 360 days, effective until June 2024. Initially set to expire in December 2023, this extension provides businesses with an extended timeframe for bill payment. The usance period applies to industrial raw materials, including back-to-back imports, agricultural implements, and chemical fertilizers under buyer’s credit. Buyer’s credit involves credit facilities for importers from international lenders. The circular emphasizes that the extended period does not apply to imports under Export Development Fund loans. This move offers flexibility for businesses engaged in importing critical materials, allowing them more time for financial arrangements and supporting smoother trade operations.

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