Stocks Refinance Scheme
Supervision body to seek MoF nod for waiver of 2 conditions
The supervision committee for Tk 900-crore government refinance scheme for the affected small investors has decided to seek permission from the Ministry of Finance for waiver of two conditions applicable for release of loans. The conditions are: all sponsor-directors personal guarantee against loans and Credit Information Bureau clearance of all sponsor-directors.The five-member committee in a meeting held recently made the decision following a request from the Bangladesh Merchant Bankers Association.
A member of the committee told New Age, ‘We have decided to waive two conditions which were mandatory for releasing loans for the affected small investors as the merchant bankers are not in a position to fulfil the conditions.’
‘But, the conditions waiver will come into action only on approval of the ministry,’ he said.
‘As the supervision committee has to act within the ministry-set guideline, it (committee) can only request the finance ministry in this regard,’ the committee member added.
The supervision committee last week for the fourth time extended the deadline to get loan applications from merchant banks and brokerage houses till March 31.
Merchant banks and brokerage houses are asked to file applications against affected investors under their organisations.
The supervision committee for the first time had set November 30 as deadline to receive applications from the merchant banks and brokerage houses in favour of affected small investors.
As per the latest report, 14,004 affected investors of 39 institutions had so far filed applications with the loan approval committee headed by Investment Corporation of Bangladesh managing director Md Fayekuzzaman.
The loan approval committee for government refinance scheme has sanctioned around Tk 84.89 crore loans for 3,030 investors under seven merchant banks and brokerage houses.
Bangladesh Bank on August 26, 2013 released Tk 300 crore to ICB as the first tranche of the Tk 900-crore refinance scheme.
As per Bangladesh Securities and Exchange Commission report sent to the finance ministry in April 2013, only 7,413 small-scale investors out of the 9,53,849 affected by the 2010-11 stock market crash got interest waiver under the government-announced compensation package.
-With New Age input
