Dhaka:Bangladesh Bank has converted its Taka 20,000 crore support facility for closed industrial and service sector enterprises from a pre-finance scheme into a re-finance scheme, aiming to expedite the revival of non-operational businesses and ensure greater transparency in the use of funds.
According to Bangladesh Sangbad Sangstha, the central bank issued a circular introducing several amendments to the existing policy framework to streamline fund disbursement, strengthen borrower accountability, and improve monitoring of credit facilities extended under the scheme.
Under the revised arrangement, the facility, formerly known as the 'Closed Industry and Service Sector Facilitation Pre-finance Scheme', has been renamed the 'Closed Industry and Service Sector Facilitation Re-finance Scheme', or BSS Re-finance Scheme. Participating scheduled banks will now disburse loans or investments from their own funds first and subsequently apply to Bangladesh Bank for reimbursement.
The circular mandates banks to obtain formal approval from their respective boards of directors or board executive committees before disbursing funds under the scheme. Applications for refinancing must be submitted to the Director of the Banking Regulations and Policy Department-3 (BRPD-3) at Bangladesh Bank's head office within the week following loan disbursement. If a bank fails to submit the application within the stipulated period due to unavoidable circumstances, it may do so within an additional 15 days, providing a written explanation with valid reasons for the delay.
Stricter borrower eligibility requirements have been introduced to prevent misuse of the facility. Banks must obtain a written declaration from prospective borrowers confirming they have not been involved in money laundering, forgery, fraud, fund diversion, or misuse of loan funds before sanctioning any loan or investment under the scheme.
The circular also prioritizes borrowers applying through the scheduled bank from which they originally obtained project loans to facilitate the assessment process and accelerate financing for the revival of closed enterprises. All disbursements, project-related expenditures, and revenue transactions must be conducted through dedicated escrow or revenue accounts.
Banks are required to comply with the instructions issued under BRPD Circular No. 01, dated January 18, 2024, concerning the opening and operation of project income accounts. The revised directive also requires participating banks to submit refinancing applications using the prescribed format, Annexure-Ka, along with relevant documents, including credit appraisal reports, board approval, and borrower declarations.
Bangladesh Bank has amended existing participation agreements with scheduled banks to align them with the revised re-financing mechanism. References to the pre-finance scheme in earlier circulars, operational guidelines, and related agreements will be replaced by the re-finance scheme. The amendments apply to the regulatory framework introduced through BRPD Circular No. 13, dated June 4, 2026, BRPD-3 Circular Letter No. 01, dated July 7, 2026, and BRPD Circular Letter No. 32, dated September 17, 2026.