BB opens suppliers’credit for Pharma Cos’s raw materials

Monirul Alam of DOT
Bangladesh Bank (BB) has opened suppliers’ credit with repayment facility upto 360 day for local pharmaceuticals product manufacturers and exporters.
A circular to this effect has been served on Thursday by the central bank’s Foreign Exchange Policy Department (FEPD) on All Authorized Dealers of Foreign Exchange in Bangladesh asking for necessary compliance.
The central bank said the credit opportunity has been opened in light of the Government’s ‘National Active Pharmaceutical Ingredients (API) and Laboratory Reagents Production and Export Policy’ issued on 14th May last year.
“To facilitate import transactions in accordance with this policy, it has now been decided that Authorized Dealers (ADs) may allow only API and Laboratory Reagents producing industries to import raw materials for manufacturing API and Laboratory Reagents on supplier’s/buyer’s credit terms for a usance period up to 360 days,” the BB circular reads.
The new credit scheme is, however, subject to observance of the regulatory compliances duly, including, approval of the Directorate General of Drug Administration (DGDA) on import of raw materials for API and Laboratory Reagents in favor of the concerned industry.