All industries, foreign and local, to come under stimulus schemes: BB

Bangladesh Bank has instructed banks and non-bank financial institutions (NBFIs) to include all kinds of industries along with export-oriented ones owned by foreign and local entrepreneurs in the stimulus schemes.

Both local and foreign companies will get loans from the stimulus packages through banks and NBFIs, so they can continue production and generate employment, according to a circular issued by the BB.

There is a stimulus package of Tk7,000 crore, from which loans will be sanctioned for working capital for the export-oriented industries under the Bangladesh Economic Zones Authority (BEZA), the Bangladesh Export Processing Zones Authority (BEPZA) and Hi-tech Park.

Since the onset of the Covid outbreak, the government as well as the central bank has floated 23 packages worth Tk1,24,053 crore.

The money injected in the form of loans into the country's economy reached Tk65,622 crore at the end of January, 2021 under 10 stimulus packages through the banking channel, according to a Bangladesh Bank report.

Under the stimulus packages, Tk97,917 crore was allocated for different sectors to minimise the economic fallout caused by the coronavirus since March last year.

About 67% of the fund has been disbursed already.

The Tk5,000 crore package announced to help pay salaries and allowances of workers and staff of active export-oriented industries is the lone package implemented fully.

In terms of value, the stimulus package for working capital meant for adversely affected large industries and service sector borrowers was the highest and its implementation reached 91.53% at the end of January. The banks have disbursed Tk30,270 crore out of Tk33,000 crore of the package.

Nearly 58% of Tk20,000 crore of the package, the second highest, meant for the cottage, micro, small and medium entrepreneurs, has been disbursed, after the implementation time was extended for a number of occasions.

Under the agriculture refinance scheme, the banks have disbursed Tk3,466 crore out of Tk5,000 crore to farmers.

For the payment of interest subsidy for April and May of 2020, the central bank has disbursed Tk1,390 crore to commercial banks.

From the export development fund, the central bank disbursed Tk9,132 crore out of Tk12,750 crore allocated.

Nearly half of the Tk3,000 crore in refinance scheme has been delivered to low-income professionals, farmers and small businesspeople.

From Tk5,000 crore pre-shipment credit refinancing scheme, exporters have received Tk136 crore.

Banks' disbursement in agricultural loans at 4% concessional interest rate has reached Tk3,167 crore.

Apart from all these, the central bank formed a Tk2,000-crore credit guarantee scheme.