Initiative to reopen closed factories: Loans of up to 200 crore at 7% interest

Bangladesh Bank has taken a major financial initiative to bring closed and partially closed industrial and service sectors back to production. For this purpose, a pre-financing fund of 20 thousand crore taka has been announced. The most important aspect of the new policy is that this loan facility will be available at the customer level at an interest rate of only 7 percent, which is almost half of the current market rate.

According to the Bangladesh Bank notification, banks will collect money from the central bank at 4 percent interest and distribute it to entrepreneurs at 7 percent interest. Through this, the aim is to reduce the pressure of working capital in the industrial sector and keep production running. Large industrial and service sector institutions will be able to take loan facilities of up to 200 crore taka.

The policy states that this loan can mainly be used to pay workers' salaries and allowances, electricity and gas bills and procure raw materials required for production. Workers' salaries must be paid through banks or mobile financial services - cash transactions have been completely banned. In addition, this money cannot be used to repay any previous loans.

Strict monitoring has been put in place to ensure transparency in loan disbursement. Banks will have to collect regular weekly production and sales reports and visit factories every three months. Bangladesh Bank will also conduct on-site inspections if necessary. Failure to repay the loan on time will attract an additional 2 percent penalty interest.

Earlier, on May 23, Bangladesh Bank announced a total stimulus package of Tk 60,000 crore. This new Tk 20,000 crore scheme is being seen as part of that larger economic plan. According to economists, if this 7 percent interest facility is effectively implemented, closed industries will reopen, employment will increase and the country's production and export sectors will gain positive momentum.