Bangladesh Bank, the central bank of the Bangladesh government has set up a refinancing fund of Tk 200
million for the development of the country's shipbuilding industry. The fund
has been set up under the Shipbuilding Industry Development Policy-2021. Bangladesh
government central bank issued a notification in this regard on 26 May 2022.
The central bank said in a circular that the fund would
provide loans to the shipbuilders for the development, management, and
development of the shipbuilding industry, including export-oriented
shipbuilders and local industries. Under the fund, loans will be available at a
maximum interest rate of 4.5%. And the banks of Bangladesh will be able to
avail of refinancing facilities from Bangladesh Central Bank at 1% interest.
However, the central bank has imposed a number of
restrictions on the disbursement of these loans. It is said that no one can
take a loan from this fund against the construction of a dockyard, purchase of land, or
lease. No other loan or loan interest can be repaid with this loan.
Participating banks in managing the fund and all scheduled
banks operating in Bangladesh will be eligible for a refinancing facility. The
bank interested in taking refinance will have to enter into a participation
agreement with Bangladesh Bank.
A bank will be able to take a working capital loan from its own
funds for a period of one year. In this case, the bank will give the loan on the
basis of the banker-customer relationship as per the prevailing rules and will be
able to renew it if the business transaction is satisfactory. However, through
renewal, a customer will be able to avail of the benefits declared under this fund
for a maximum period of three years. Bangladesh Bank will be able to reduce or
increase the benefit period under this fund as opposed to the loan given for
working capital considering the need.
The application for refinancing has to be filed by June 30,
2024, in Bangladesh Bank regarding the availability of funds for lending or investment
under this fund in favor of a particular customer.
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