The government has approved the guidelines for the share market refinancing scheme of Tk9bn, setting an interest rate of 9% on loans for the affected investors, officials sources said.
Sources in the ministry of finance have confirmed that the Finance Minister AMA Muhith signed the proposed guidelines on Monday, which was informed to ICB, Bangladesh Bank and Bangladesh Securities Exchange Commission yesterday.
Bangladesh Bank will disburse the first instalment of Tk3bn on the first day of next week. The next instalment will be disbursed three months later.
Three stakeholders of the stock market and government agencies like BB, ICB and BSEC will hold a meeting to sign a MoU in this regard today.
A supervision committee was formed to oversee the scheme and its activities, according to ICB (Investment Corporation of Bangladesh) sources.
ICB Managing Director Md Fayekuzzaman told the Dhaka Tribune yesterday that they received the refinancing scheme guideline on Tuesday and ICB will hold a meeting at ICB today to sign a MoU with the stakeholders.
According to the guideline, ICB will be responsible to handle the refinancing scheme and merchant banks and stock brokers will collect the fund from Bangladesh Bank for three years.
Merchant banks and brokers will waive 50% interest on loan earlier taken by the affected small investors during the 2011/2011-2012 fiscal years.
ICB will then provide the loans to the merchant banks and broker firms at an interest rate of 7%, of which 2% will be deducted by the ICB as its service charge.
It is also mentioned that no risk will create in handling the financing for small, affected investors in the country’s stock markets and the fund will not suppose to be used for other business purposes.
Bangladesh Merchant Bankers Association (BMBA) President Mohammad A Hafiz told the Dhaka Tribune yesterday that it would help recover investors’ confidence although the guideline for the small, affected investors approved too late.
If the government continues with the financial support to the affected investors, it will definitely make the market vibrant, he added.
