Bangladesh Bank on Thursday extended the stimulus package fund for industries and services sector affected by the Covid-19 pandemic, from Tk33,000 crore to Tk40,000 crore.
On April 5, this year, Prime Minister Sheikh Hasina announced a Tk30,000 crore stimulus package, as working capital for Covid-19 affected industries to revive the country’s economic activities.
Then on July 23, the size of the stimulus package was extended by Tk3,000 crore to Tk 33,000 crore as wages for the workers of export-oriented industries.
Three types of industries - A, B and C - located in Bangladesh Economic Zone Authority (Beza), Bangladesh Export Processing Zones Authority (Bepza) and Bangladesh Hi-Tech Park Authority would be eligible for loans facilities as working capital under the extended Tk7,000 crore stimulus funds, according to the Bangladesh Bank circular issued on the day.
On April 12, the central bank launched the stimulus package, allowing banks to get an interest subsidy of 4.50% on disbursed loans, while end-users (borrowers) will get at 9% interest rate.
The Bangladesh Bank later formed a refinance scheme of Tk15,000 crore for lenders to implement the stimulus package.
Under the scheme, banks will get funds in the form of working capital at 4% interest from the central bank, while clients will get it at 9%.
The initiative was taken to support the affected foreign and joint venture industries under such authorities in order to strengthen their financial capabilities to continue production and employment.
