Bangladesh Bank (BB) has allowed importers to bring in 11 types of essential commodities on deferred payment (loan) terms of up to 90 days to keep market prices stable and ensure normal supplies of daily essentials ahead of Ramadan.

The central bank issued a directive in this regard on Wednesday.

According to the circular, importers of rice, wheat, onions, lentils, soybean oil, palm oil, sugar, chickpeas (chhola), spices, dates, and peas (motor) will be eligible to enjoy up to 90 days of deferred payment facility.

Importers can avail of this facility under suppliers' credit or buyers' credit.

Under this arrangement, importers will not be required to settle the full import value immediately upon the arrival of goods in the country.

Instead, they will have the opportunity to make payments after a designated maturity period, allowing them to sell the products and clear their bank liabilities accordingly.

Demand for commodities such as rice, lentils, onions, edible oil, sugar, chickpeas, and dates typically surges during Ramadan, making it crucial to sustain supplies and alleviate pressure on market prices.

The central bank announced that this new facility will remain effective until March 15 next year.

Previously, on November 8, Bangladesh Bank directed commercial banks to keep cash margins at the minimum level based on banker-customer relationships when opening import letters of credit (LCs) for these same 11 essential items ahead of Ramadan.

An LC margin refers to the specific amount of cash or security a trader must deposit with a bank when opening an LC, which can range up to 100 percent or be relaxed to minimal levels depending on the relationship and capital requirements.