Against the backdrop of increasing demand for setting up agro-based industries, Bangladesh Bank will allocate Tk 200 crore more to the bank’s refinancing fund.
The SME and special programmes division of the central bank has so far prepared a proposal to raise the fund to Tk 400 crore from the existing Tk 200 crore to help facilitate the growth of agro-based industries.
The proposal will be sent to the board of directors of the bank for approval, sources said on Thursday.
When asked, general manager of the bank’s SME and special programmes division Sukomol Sinha Chowdhury told BSS that the proposal had been made to raise the refinancing fund against the backdrop of increasing demand for setting up agro-based industries.
‘We hope that the board of directors of the bank will give approval of the proposal after reviewing the prospect of agro-based industries in the country,’ he added.
He observed that raising the refinancing fund to Tk 400 crore will play a vital role in flourishing the country’s agro-based industries.
Bangladesh Bank under its small and medium entrepreneurship sector first introduced the refinancing fund in 2001 with the initial financing of Tk 50 crore to facilitate setting up of agro processing industries. Later, the fund was raised to Tk 200 crore.
From the refinancing fund, banks and other financial institutions have been providing loan at 5 per cent interest rate and the banks distribute the loan among the customers at 10 per cent interest rate.
At least 15 banks and financial institutions have been distributing loans from the fund outside Dhaka and Chittagong.
As many as 1,681 entrepreneurs have been provided Tk 342 crore loan so far, from the fund.
-With New Age input
