No more EDF loan for exporters misusing the facility- The Business Standard

As of 29 June, the central bank’s reserves stood at $41.87 billion

Exporters failing to settle loans from the Export Development Fund (EDF) with export proceeds within the deadline will no longer be eligible for the borrowing facility from the foreign exchange reserve, said the central bank.

A circular, released on Wednesday, by the central bank’s Foreign Exchange Policy Department, states, it is observed that EDF loans are settled, without repayment out of realised value in foreign currency, by extending funded facilities.

“The situation does not ensure export of goods for which EDF loans have been used. In view of the situation, you are advised to comply with the instructions in settlement of EDF loans and refrain from forwarding applications of EDF loans, irrespective of the nature of imports, for customers whose liabilities have been settled through funded facilities in the immediate past 180 days,” it added.