Bangladesh Bank signs deals with 44 banks over stimulus loan refinancing

Staff Correspondent | Published: 23:09, May 19,2020


The Bangladesh Bank has signed participation agreements with 44 banks to disburse Tk 15,000 crore in loans for the implementation of the government-announced stimulus package for large industries and service sector.

Of the banks, 14 banks signed agreements on Monday and the rest signed deals on Tuesday with the central bank, said a senior BB official.

The agreements were signed at the Bangladesh Bank headquarters in the capital.

Apart from the 44 banks, 23 non-bank financial institutions will sign the participation agreement today, the official added.

Bangladesh Bank’s off-site supervision department general manager Shahidul Islam and the managing director of the banks signed the agreements on behalf of their respective organisations.

The banks include Sonali Bank, Rupali Bank, Agrani Bank, Dhaka Bank, Mercantile Bank, Trust Bank, Southeast Bank, Shahjalal Islami Bank, One Bank, South Bangla Agriculture and Commerce (SBAC) Bank, NRB Commercial Bank, NRB Global Bank, Union Bank, the Commercial Bank of Ceylon PLC, Dutch-Bangla Bank, Prime Bank, Mutual Trust bank, The City Bank, Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank.

The government has declared a Tk 30,000 crore stimulus package for large industries and the service sector entities affected by the coronavirus outbreak in a bid to foster economic recovery.

The banks will arrange the funds from their own sources.

To support implementation of the package, the Bangladesh Bank on April 23 formed a Tk 15,000 crore revolving refinance scheme.

Under the scheme, the banks and non-bank financial institutions would be eligible to avail 50 per cent of the disbursed loans from the central bank’s refinance scheme at the rate of 4 per cent interest.

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