Bangladesh Bank (BB) has broadened access to its Tk20,000 crore fund for reviving closed industries and service-sector businesses, removing a restriction that had limited parts of the facility to large industries.
The central bank has also introduced a six-month grace period on interest payments for borrowers under the scheme, while keeping the maximum lending rate at 7 per cent.
BB announced the changes on Thursday through an amendment to its Closed Industry and Service Sector Facilitation Pre-finance Scheme, originally introduced in June.
Under the revised rules, references to “large industry” in the earlier guidelines have been replaced with “industry”, widening the scope of businesses that can seek financing under the scheme.
Borrowers will not have to start paying interest during the first six months after loan disbursement. Interest payments will begin after the grace period, including the accumulated interest for the first two quarters.
The six-month facility is therefore a deferment, not an interest waiver.
Participating banks will receive pre-financing from BB at an interest rate of 4 per cent. They, too, will begin paying interest to the central bank after six months, including interest accumulated during the first two quarters.
BB has also clarified the application window. Eligible borrowers can apply for financing at any point during the scheme’s three-year tenure, subject to availability of funds.
The Tk20,000 crore scheme was established on 4 June to provide financing support for closed industrial and service-sector businesses. BB subsequently issued further instructions on 7 July.
The latest amendments take effect immediately.
