Capital market revised refinancing scheme: Tk 2.05b sought from Bangladesh Bank

FE Report | Wednesday, 25 May 2022

The capital market refinancing scheme supervision committee has sought Tk 2.05 billion from the central bank for disbursement among market operators under the revised scheme.

The committee has sent a letter to the Bangladesh Bank (BB) after holding a meeting on Tuesday, sources said.

"We have requested the central bank to disburse Tk 2.05 billion, and the BB hopes that the fund will be released within a couple of days," said a BB official - who attended the meeting.

In the meeting, the refinancing scheme supervision committee also approved the market operators' applications, submitted for receiving Tk 220 million from the scheme.

The committee held its first meeting after a couple of days after the government extended tenure of the revised refinancing scheme until December 2027 to help revitalise the capital market.

The representatives of the central bank, the Bangladesh Securities and Exchange Commission (BSEC), and the Investment Corporation of Bangladesh (ICB) attended the meeting, among others.

As per the government's decision, the size of the fund, to be disbursed under the revised scheme, will be Tk 10.09 billion.

Following the announcement of disbursing fund under the scheme, the broad index of the Dhaka bourse jumped over 118 points on Monday. The index, however, failed to sustain and lost 50 points on Tuesday.

The government launched the capital market refinancing scheme worth Tk 9.0 billion in 2013 to reduce sufferings of the small investors, affected during the 2010-11 market crash.

Of the Tk 9.0 billion, the state-run ICB received Tk 8.56 billion in three installments - based on the market operators' demand.

The scheme has also realised Tk 1.53 billion of the Tk 8.56 billion, and both the amounts will be gradually disbursed under the revised scheme.

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