BB governor announces Tk 60,000 crore incentive package

Bangladesh Bank has announced a Tk 60,000 crore incentive package to revive closed factories, increase agricultural production and provide working capital loan facilities. 

Of this, commercial banks will distribute Tk 41,000 crore from their own funds while the central bank will refinance Tk 19,000 crore. 

The government will provide a 6 percent interest subsidy in both cases.

Governor Mostakur Rahman announced this package at a press conference in the meeting room of Bangladesh Bank on Saturday. 

He said that our goal is to provide employment to 2.5 million people through this.

The governor said that the banking sector is going through various challenges. Tk 5 lakh crore has been stolen from the banking sector. This is politely called default. Actually, it is not a default. In most cases, there is no collateral or proper document against these loans. These stolen funds have been laundered. It takes a lot of time to return these funds although the government is giving top priority to returning the money.

The governor also said that our goal is to increase employment, increase GDP growth, and increase exports by increasing productivity. Our goal is to revive business and trade.

How nmuch fund in which sector?

Out of the refinancing fund of 41 thousand crore taka, Tk20,000 crore will be given to closed industries and services sector, Tk5,000 crore to CMSME sector, Tk10,000 crore to agriculture and rural economic activities, Tk3,000 crore to diversify exports, and Tk3,000 crore to develop North Bengal as an agricultural hub.

The central bank's own Tk19,000 crore will be given to banks at 4 percent interest. The banks will give loans at the customer level. Out of the refinancing fund, Tk5,000 crore will be given to pre-shipment credit for the export sector. Tk5,000 crore for cottages, micro and small entrepreneurs, Tk2,000 crore for leather and leather products, Tk1,000 crore for employment of unemployed youth, Tk1,000 crore for rural economic activities, Tk2,000 crore for frozen fish and fish export sector, Tk1,000 crore for environment-friendly or green investment, Tk1,000 crore for foreign employment, Tk500 crore for startup sector and Tk500 crore for creative economy. 

The central bank will spend this Tk500 crore for creative economy under CSR.