Bangladesh House Building Finance Corporation has got an amount of Tk50 core from the government to continue its lending programme.
Finance Division released the money Wednesday as last instalment under a Tk300 crore recapitalisation package being disbursed from 2008-2009 fiscal.
Currently, the corporation has suspended its lending programme for last three months due to fund shortage.
In March, the state-run corporation sought Tk500 crore as budgetary allocations so that the money could be used since the beginning of next fiscal year, said finance ministry sources.
Meanwhile a month ago, the HBFC sent another proposal to the finance division for allocating Tk300 crore in the upcoming Annual Development Programme (ADP).
But an official of the corporation alleged that the finance division has not yet forwarded the proposal to the Planning Commission although the national budget will be placed in parliament early next month.
“We are in financial crisis. The government is not interested to meet our demand,” alleged an official of the HBFC.
When contacted, Banking Division Secretary said finance division is not willing to provide money to the corporation as “it is now unable to recover loans.”
Dr Aslam Alam said the finance division has so far disbursed money to the HBFC as promised earlier.
He added the sovereign guarantee could have been given to the corporation for borrowing fund from the development partners like World Bank, Asian Development Bank and other international lending agencies.
“But the finance ministry refused to give guarantee to the corporation,” the secretary said.
Finance ministry sources said the corporation received Tk40 crore as loan from the government in 2012-13 fiscal.
It could not mobilise any other fund for lending.
The HBFC provides housing loans in Dhaka and Chittagong metropolitan cities at a rate of 12% - lowest in the market.
For other cities and towns, the rate is 10%.
There are plans by the corporation to expand its activities through setting up offices in every district gradually.
The organisation is now operating 29 offices across the country.
During July-December period of 2013, the amounts of loan sanctioned, disbursed and recovered were Tk222 crore, Tk226 crore and Tk200 crore respectively.
The total loan balance was around Tk2,930 crore. During the same period, the amount of classified loans stood at Tk233 crore, only about 8% of the total disbursement.
The corporation has increased the individual loan ceiling to Tk50 lakh two years ago.
The corporation’s lending had earlier remained suspended from 1988 to 1992 due to fund shortage.