Working capital loan fund under Covid-19 stimulus package raised to Tk 400b

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 400 billion from Tk 330 billion, a Bangladesh Bank circular said Thursday.

Initially, the loan package for such purpose was Tk 300 billion when it was first announced on April 5 this year under the Economic Stimulus Package, reports UNB.

Later, the fund was enhanced to Tk 330 billion to facilitate the salary payment of the export-oriented garment industries.

"Now, this fund has been increased to Tk 400 billion 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 70 billion 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 9.0 per cent of which the government will provide 4.5 per cent as subsidy, said the central bank circular.