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No fund for state banks this month

  • Published at 09:04 pm December 18th, 2013

The government has decided not to disburse in December the fund from the national budget to meet the capital shortfall of four state-owned commercial banks during the present interim government tenure, officials said.

Finance Division yesterday informed the decision to the banking division at a meeting on setting priority to disburse the fund. Additional Secretary of the finance division Ranjit Kumar Chakraborty presided over the meeting at the finance ministry. The Banking and Financial Institutions Division wanted to disburse the fund this month, but the Finance Division argued International Monetary Fund imposed a condition to disburse the Tk4,100cr fund under its Extended Credit Facility programme, said a senior official.

Sources said the government does not want to disburse any budget fund in December as the fund will be required to meet other expenditure while the economy is in shock due to the prolong violence and political deadlock.

The banking division proposed to disburse the amount to the banks, but the division is not interested to disburse any fund for three of them – Bangladesh Commerce Bank, Bangladesh Krishi Bank and Basic Bank, source in the meeting said. Sonali Bank will get highest amount of Tk2,000cr and rest of the fund would go to three banks, officials said .

Banking Secretary Dr Aslam Alam told Dhaka Tribune the budget division will also impose their conditions to disburse fund for the state owned banks.