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Bangladesh Bank has approved a Tk 10.0 billion refinancing scheme to provide long-term soft loans for the construction of modern movie theatres and renovation of old ones.
Theatre owners will get loans at 5 per cent interest under the scheme, the central bank said in a circular issued on Sunday, reports UNB.
The circular mentioned that the central bank launched the scheme in order to bring back the glory of the movie industry of the country by construction and renovation of modern theatres.
As per the circular, theatre owners will have to apply to banks for the loans and banks will disburse loans examining the project’s financing viability. The loan amount will not cross a limit of Tk 50 million for each theatre in any case.
The repayment period of the loans will be a total of eight years including one year grace period having a provision of three monthly equal installments of the payback facility.
Out of the total fund of Tk 10.0 billion, Tk 5.0 billion will be distributed in the first phase while the remaining Tk 5.0 billion in the second phase.
Financing banks will take the fund from the central bank at 1.5 per cent interest and distribute the loans at 5 per cent interest in the metropolitan areas and 4.5 per cent interest outside the metropolitan areas.
The circular mentioned that once there were 1600 movie theatres across the country. But the number of theatres is decreasing for various impediments.
It said Prime Minister Sheikh Hasina declared the sector as an industry on April 3 in 2012 to create a renaissance among the people involved in the sector by enhancing their skills through modern technology and also to an investment-friendly atmosphere.