Press Release: Islami Bank Bangladesh Limited (IBBL) has established arrangement with U.S Department of Agriculture (USDA), USA. Under Export Credit Guarantee Program (GSM-102), USDA provides credit guarantees to US approved financial institutions. USDA’s Foreign Agricultural Service (FAS) administers the program on behalf of the Commodity Credit Corporation (CCC), which issues the credit guarantees. USDA has approved a limit for USD30 million for Islami Bank Bangladesh Limited (IBBL). Importers of the bank will get discounting facilities for maximum 18 month from USDA enlisted banks at lower discounting rate. The exporter’s bank will extend its financing facilities with no requirement of adding confirmation to the irrevocable letter of credit. IBBL will issue a dollar-denominated, irrevocable letter of credit in favor of the U.S. exporter. The U.S. exporter may get payment from US negotiating Banks after submitting export documents. The exporter is required to provide a report of export to CCC for each shipment that occurs under the payment guarantee. At maturity of bill, IBBL will make payment to the discounting bank. By this arrangement with US Department of Agriculture, USA, Islami Bank Bangladesh Limited will get more opportunities to increase relationship with US based financial Institutions.
|