Medical &Health

Working capital loan fund under Covid-19 stimulus package raised to Tk 40,000cr

The amount of working capital loan for Covid-19 affected industries and service sectors under the Prime Minister’s announced Economic Stimulus Package has been raised to Tk 40,000 crore from Tk 33,000 crore, a Bangladesh Bank circular said Thursday.

Initially, the loan package for such purpose was Tk 30,000 crore when it was first announced on April 5 this year under the Economic Stimulus Package.

Later, the fund was enhanced to Tk 33,000 crore to facilitate the salary payment of the export-oriented garment industries.

“Now, this fund has been increased to Tk 40,000 crore to facilitate the loan/investment support to the affected industries and service sector,” said the circular, issued by the Banking Regulation and Policy Department (BRDP) of BB for all scheduled banks

The circular said it was decided that beside the local industries, the increased fund of Tk 7,000 crore will be applicable for loan/investment facilities for the Covid-19 affected A, B and C type foreign and joint-venture industries in areas under Bangladesh Economic Zones Authority (BEZA), Bangladesh Export Processing Zones Authority (BEPZA) and Bangladesh Hi-Tech Park Authority (BHTPA).

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.

The interest rate of the loans under the package will be 9 percent of which the government will provide 4.5 percent as subsidy, said the central bank circular.

Source: United News of Bangladesh