• Thursday, Aug 06, 2020
  • Last Update : 07:30 pm

BLFCA seeks Tk10,000cr refinancing scheme

  • Published at 10:26 pm March 3rd, 2020
Bangladesh Leasing and Finance Companies Association logo
Bangladesh Leasing and Finance Companies Association logo

'The BLFCA placed several recommendations at the meeting to improve the financial health of NBFIs. The BB governor responded positively'

Bangladesh Leasing and Finance Companies Association (BLFCA) on Tuesday sought Tk10,000 crore refinancing scheme from Bangladesh Bank (BB) to salvage the ailing financial sector.

Under the proposed scheme, five-year term-loans will be extended to the NBFI which is repayable on semi-annual installment basis. 

BLFCA, the forum of the managing directors of the NBFIs was holding a meeting with the BB governor Fazle Kabir at its headquarters.

"The BLFCA placed several recommendations at the meeting to improve the financial health of NBFIs. The BB governor responded positively," said BLFCA Chairman Mominul Islam.

The central bank sought a proposal to the BLFCA within seven days, elaborating how the ailing NBFI, numbering around six, could be fixed, Mominul added.

The NBFI sector had been suffering from liquidity crisis because most of the banks were withdrawing their deposits from the NBFIs, said  Mominul Islam, also the managing director of IPDC Finance. 

He said that the recent decision to liquidate people's leasing gave a negative signal to depositors and banks. 

“This has created a confidence crisis in NBFIs regardless of their financial conditions,” Mominul said further.

On Monday, the BLFCA met with the Finance Minister AHM Mustafa Kamal and pleaded for liquidity support to help keep the sector afloat.

The interest rate of the proposed scheme should be equivalent to the six-month Treasury bill rate.

The central bank spokesman Serajul Islam said, "On Monday the BLFCA met with the finance minister and sought a rescue fund. They briefed the governor on the development."

blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail