The Investment Corporation of Bangladesh on Sunday started disbursing fund from the Tk 900-crore government refinancing scheme for the share investors affected by the market crash, giving Tk 1.11 crore to a brokerage house. The state-run organisation will soon release more funds from Tk 300 crore, the first tranche of the scheme it had taken from the Bangladesh Bank, said officials.
The release of fund for the investors, who were affected during the 2010-2011 market crash, started after the finance ministry had withdrawn a condition for the brokerage houses and merchant banks to give personal guarantee of their directors for the fund release.
The government in August last year approved the scheme to help investors minimise the loss they suffered during the fall of stock market in 2011.
The ICB has since sanctioned Tk 345 crore for the investors through 31 merchant banks and
stockbrokers.
The affected retail investors with less than Tk 10 lakh in exposure from January 2009 to November 2011 are eligible for the fund.
The state-run investment company, ICB, will receive the fund at 5 per cent interest from Bangladesh Bank and will lend it to merchant banks and stockbrokers at 7 per cent.
The merchant banks and the stockbrokers then will disburse the funds among retail investors at 9 per cent interest.
The supervision committee of the refinancing scheme once again extended the deadline for credit applications by three months to June 30.
-With New Age input
