Bangladesh Bank has formed a refinance scheme of Tk 15,000 crore for the industrial and service sectors, much to the relief of the cash-strapped banking sector that was fretting about implementing the Tk 30,000 crore stimulus package announced on April 12 for the two from their own sources.

Under the refinance scheme, lenders will get funds in the form of working capital at 4 per cent interest from the BB, which the end-users will get at 9 per cent.

But to enjoy the refinance scheme, banks will have to provide at least 50 per cent of each loan to the industrial and service sector borrowers from their own sources.

The duration of the refinance scheme is three years that will act as a revolving fund. Banks will have to sign a participation agreement with the BB to enjoy the fund from the scheme.

Banks will be allowed to get an interest subsidy of 4.50 per cent for the disbursed loans, which will be given by their own sources.

The affected clients, who have already taken loans from banks, will be permitted to take a maximum 30 per cent loans from their existing credit limit. The new borrowers will get 30 per cent loans of their requirement.

The most affected borrowers will be given priority while disbursing loans from the fund and banks will provide the loans from their own coffer.  

https://www.thedailystar.net/business/news/bb-forms-tk-15000cr-fund-industrial-service-sectors-1896193