As of January 1, 2026, Bangladesh Bank (BB) has officially transitioned the import credit landscape back to a more disciplined regime. The temporary 360-day “emergency” usance period that helped businesses survive the liquidity crunch of 2024-2025 has expired. In its place, the central bank has introduced a stricter 270-day limit for industrial raw materials, aimed at balancing trade flexibility with the need to protect national foreign exchange reserves.
For the business community at Arthik Alap, these changes require immediate adjustments to supply chain financing and cash flow planning.
1. The Core Update: 270-Day Usance Period
According to the latest BB Circular (issued December 29, 2025), the deferred payment (usance) term for key imports has been slashed from 360 days down to 270 days.
What is covered under the 270-day rule?
- Industrial raw materials (including those imported via back-to-back LCs).
- Agricultural implements and chemical fertilizers.
- Imports under suppliers’ or buyers’ credit.
The “Cash Conversion” Clause: The usance period is now capped at 270 days OR the actual Cash Conversion Cycle of the business, whichever is earlier. Banks are instructed to verify that your credit term aligns realistically with how fast you convert raw materials into cash.
2. Capital Machinery: The 3-Year Advantage
To support long-term industrialization, the central bank has provided a significant “booster” for factory owners. Effective from December 10, 2025, industrial importers can now import capital machinery and capital goods with a usance term of up to 3 years (1,095 days).
Key Benefits:
- BIDA Approval Removed: For machinery imports via foreign credit with a minimum 3-year tenure, prior permission from the Bangladesh Investment Development Authority (BIDA) is no longer required.
- Broad Scope: This facility now covers not just core machinery, but also heavy equipment, ships, and specialized industrial assets.
- Spare Parts: Note that the usance period for spare parts remains capped at 360 days.
3. Important Exclusions & Diligence
- Export Development Fund (EDF): The extended usance facility does not apply to imports financed through the EDF. These remain governed by their own specific repayment cycles.
- Back-to-Back LCs: For exporters, the usance period for raw materials must align strictly with the statutory timeframe for the repatriation of export proceeds.
- Bank Verification: Authorized Dealers (ADs) are now required to conduct much stricter “due diligence.” They will review your historical operating trends before approving a 270-day credit term.
4. Strategic Advice for Importers in 2026
With credit terms tightening for raw materials, Arthik Alap recommends three strategies:
- Optimize Inventory: Faster production cycles will be rewarded. If your cash conversion cycle is only 180 days, you will likely not get the full 270-day credit.
- Leverage the 3-Year Rule: If you are planning factory expansions, now is the time to utilize the 3-year supplier credit for machinery to keep your short-term liquidity free.
- Prepare for LDC Graduation: With graduation set for November 24, 2026, start reviewing your duty structures. The 2026 budget has already begun rationalizing tariff lines to make industry more competitive.
