17 banks to provide Tk 41,000 crore to reopen closed factories

An agreement has been completed to collect Tk 41,000 crore from 17 banks as part of Bangladesh Bank’s Tk 60,000 crore incentive package to reopen closed factories and restore momentum to the stagnant economy. The banks that have agreed to provide funds for the incentive package are Sonali, Agrani, Rupali, BRAC, City, Jamuna, Dutch-Bangla, Mutual Trust, Uttara, Prime, Bank Asia, NCC, Pubali, Eastern, Mercantile, Trust and Southeast Bank. On May 23, Bangladesh Bank announced an incentive package of Tk 60,000 crore to reopen factories that had remained closed for a long time, increase private-sector investment and revive the stagnant economy. The central bank announced the Tk 60,000 crore incentive to reopen closed factories and create 2.5 million jobs.

At a briefing at the time, Bangladesh Bank Governor Mr. Mostakur Rahman said the package was basically a “production and employment recovery” programme. He expressed hope that around 2.5 million jobs would be created through it. Of the Tk 60,000 crore incentive package, Tk 41,000 crore is being collected from commercial banks. The remaining Tk 19,000 crore will be provided by Bangladesh Bank from its own funds.As the largest component of the package, Tk 20,000 crore has been allocated to reopen industrial factories that have remained closed for a long time. Loans from this fund will be provided to private-sector entrepreneurs at an average interest rate of 7.5 percent.