Jute mills, traders to get loan at 9pc interest

TK 200CR REFINANCE SCHEME

Staff Correspondent
A file photo shows a grower washing jute fibres at a village in Munshiganj. Bangladesh Bank on Monday said the jute sector entrepreneurs would get loans at the interest rate of 9 per cent from a central bank’s refinance fund of Tk 200 crore. — New Age photo

A file photo shows a grower washing jute fibres at a village in Munshiganj. Bangladesh Bank on Monday said the jute sector entrepreneurs would get loans at the interest rate of 9 per cent from a central bank’s refinance fund of Tk 200 crore. — New Age photo

Bangladesh Bank on Monday said the jute sector entrepreneurs would get loans at the interest rate of 9 per cent from a central bank’s refinance fund of Tk 200 crore.
The BB on the day issued a circular to managing directors and chief executive officers of all scheduled banks saying that the board of directors of the central bank had recently approved the fresh refinance scheme to boost the country’s jute industry.
State-owned jute mills, private jute mills and raw jute traders will get 40 per cent, 40 per cent and 20 per cent loans respectively from the refinance fund, according to the BB circular.
If any amount under the 40-per cent quota for the state-owned jute mills remains unused, that will be disbursed among the private jute mills, the circular said.
The fund for the refinance scheme will come from the BB’s own treasury and the commercial banks would get loans from the refinance scheme at the interest rate of 5 per cent.
The banks will disburse the loan among the businesspeople at the interest rate of 9 per cent.
The businesspeople who will fail to repay the loan in due time will have to provide the interest at the traditional rate for their overdue amount.
The tenure of the refinance fund will be five years, the circular said.
The scheduled banks which will seek the fund from the refinance scheme will have to sign participant agreements with the central bank.
The BB will impose 10 per cent interest against the commercial banks which will not be disbursed the fund properly.
The BB will deduct the overdue loan of the commercial banks from their (banks) current account with the central bank if they fail to repay the loan in due time, the BB circular said.




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