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REFINANCE SCHEMES

BB to collect instalments from banks on quarterly basis

Staff Correspondent | Published: 02:04, Aug 07,2020

 
 

The Bangladesh Bank on Thursday issued a clarification on refinancing banks against the disbursement of stimulus loans by them, stating that the banks will have to repay the money in quarterly instalments.

The central bank on the day issued a circular in this regard clarifying that the tenure of the refinance schemes launched by the central bank would expire on August 3, 2023 as its tenure started on August 4 this year.

A Tk 15,000-crore refinance fund was launched by the central bank with the aim to support the banks in implementing the Tk 30,000-crore stimulus package.

The package was launched for large-scale industries and the service sector.

The central bank also launched another Tk 10,000 crore in refinance fund to support the banks with liquidity to implement the Tk 20,000-crore stimulus package.

In the circular, the BB mentioned that it would grant refinance to the banks against the outstanding principle loan, at the end of the immediate preceding month, that the bank issued to its clients.

The banks will have to return the refinance loans in quarterly instalments and the amount will be deducted from the banks’ current account with the central bank.

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