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Seventeen banks have signed agreements with Bangladesh Bank to provide Tk 41,000 crore under a Tk 60,000-crore incentive package aimed at reopening long-closed industrial units, increasing private-sector investment and reviving the sluggish economy.
The participating banks are Sonali Bank, Agrani Bank, Rupali Bank, BRAC Bank, City Bank, Jamuna Bank, Dutch-Bangla Bank, Mutual Trust Bank, Uttara Bank, Prime Bank, Bank Asia, NCC Bank, Pubali Bank, Eastern Bank, Mercantile Bank, Trust Bank and Southeast Bank.
Bangladesh Bank announced the Tk 60,000-crore package on May 23. Of the total amount, Tk 41,000 crore will be mobilised from commercial banks, while the central bank will provide the remaining Tk 19,000 crore from its own funds.
The largest allocation, Tk 20,000 crore, has been earmarked for reopening industrial units that have remained closed for a long period.
Private-sector entrepreneurs are expected to receive loans from this fund at an average interest rate of 7.5 percent.
Bangladesh Bank Governor Md Mostaqur Rahman previously described the initiative as a “production and employment recovery” programme.
The central bank expects the programme to create around 2.5 million jobs by reviving productive sectors and encouraging private investment.
The central bank believes that bringing closed and inactive industrial units back into production will create employment, boost private investment and help restore momentum to the economy.
