Tk 1,000-cr refinance

BB approval must to extend loans to cinema owners

Staff Correspondent | Published: 22:39, Mar 03,2021

 
 

Banks will have to take approval from the Bangladesh Bank for issuing loans from a Tk 1,000-crore refinance scheme to cinema owners for renovation, modernisation, purchasing machinery and technology for existing cinemas and establishment of new ones.

The central bank issued a circular in this regard on Wednesday, setting the prerequisite.

The central bank’s department of off-sight supervision would give approval to banks to disburse loans to cinema owners.

Upon receiving approval from the BB, banks would disburse loans to cinema owners and apply for refinance loans to the central bank.

The central bank would consider tenure and grace period of the loans when the lending banks would take the first tranche of the refinance from the BB.

For the disbursement of the second tranche of the refinance from the BB, the banks will have to ensure proper utilisation of the first instalment of the refinance loans.

The applicable interest to the one-year grace period of the loans would be recoverable from the customers by equally distributing the interest on the remaining seven years tenure of the loan.

The banks would neither be allowed to adjust the loans partially nor be given scope to slap additional charge on the loans.

On January 26, the BB formed the Tk 1,000-crore refinance scheme for upgrading the country’s cinemas with the aim of reviving the country’s film industry.

Cinema owners and investors in the sector will get the highest Tk 5 crore in loan against a cinema at interest rate up to 5 per cent from the scheme.

The interest rate will be the highest 5 per cent for the borrowers in metropolitan areas and 4.5 per cent outside the metropolitan areas.

The borrowers will not be allowed to spend the money for any other purpose.

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