The scheduled banks have applied for Tk 4,142 crore in refinance against their disbursement of Tk 8,284 crore in loans from a major stimulus package meant for the large industries and services in five months of the refinance fund formation by the Bangladesh Bank.
The banks have demanded refinance from the central bank against disbursement of loans to 3,126 large industries and service sectors so far, according to BB data.
BB officials said that the banks’ applications for refinance reflected that the actual disbursement from the fund would be above Tk 8,284 crore from the largest stimulus package.
Besides, injection of money by the central bank into the banking system against purchase of the US dollar could be another reason, they said.
Adequate amounts of liquidity in the banks might be a reason for the lukewarm demand for refinance from the banks, the officials said.
In two months (July-August) of the fiscal year 2020-2021, the BB, in line with its expansionary monetary policy statement, pumped around Tk 14,416 crore against the purchase of $1.7 billion.
On April 22 this year, immediately after the outbreak of coronavirus in the country, the BB formed a refinance scheme worth Tk 15,000 crore.
The size of the refinance fund, however, was enhanced to Tk 16,500 crore when the size of the stimulus package was raised to Tk 33,000 crore.
The enhancement was made by the government as per the export-oriented industries’ demand for additional loans. The export oriented industries has received Tk 10,500 crore in financial support from the government for the payment of their workers’ salary of four months.
BB officials said that the banks received Tk 1,425 crore till September 20 from the Tk 16,500-crore refinance fund.
The banks which received the facility include Shahjalal Islami Bank, Prime Bank, Dutch-Bangla Bank, Southeast Bank, IFIC Bank, Mercantile Bank, BRAC Bank, Agrani Bank, Rupali Bank and Janata Bank.
BB spokesperson Md Serajul Islam told New Age that the BB had approved different banks’ loan proposals amounting to Tk 25,924 crore from the package till September 15.
The approved amount involves loan applications by 1,992 entities.
As per the BB data, the BB has sanctioned Tk 19,385 crore in stimulus loans for the large industries and services while Tk 5,404 crore in stimulus loans were approved for the export-oriented industries and disbursement of the rest Tk 1,135 crore in stimulus loans were under process by the non-bank financial institutions.
A number of officials of the central bank said that the actual disbursement would be lower than the BB-approved loans as the loans would be disbursed based on some conditions and depending on the bank-customer relationship.
The banks would disburse loans if they find it appropriate and when the customer would be able to comply with the conditions set by the banks, they said.
Besides, change in business plan of the customers may also hamper the credit disbursement even after the BB’s approval, the BB officials said.
The central bank in August extended the deadline for the implementation of the stimulus package to October.
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