Banks start disbursing stimulus funds today
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard

Saturday
August 20, 2022

Sign In
Subscribe
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
SATURDAY, AUGUST 20, 2022
Banks start disbursing stimulus funds today

Banking

Shafayat Hossain
31 May, 2020, 08:45 am
Last modified: 31 May, 2020, 10:49 am

Related News

  • Eight more banks make unusual gains from forex dealings
  • Unusual profits from dollar trading: BB seeks explanations from six banks’ MDs
  • Eight more banks make unusual gains from forex dealings
  • Banks settle LCs at Tk107 per dollar
  • Removal of Treasury chiefs: Panic or justified?

Banks start disbursing stimulus funds today

The government has declared around Tk1 lakh crore stimulus packages to provide low-cost funds for the revival of all types of businesses and overcoming losses

Shafayat Hossain
31 May, 2020, 08:45 am
Last modified: 31 May, 2020, 10:49 am
File Photo: Rehman Asad/TBS
File Photo: Rehman Asad/TBS

Private banks are all set to start disbursing loans from the stimulus packages today, as an effort to recover the country's economy from the fallout of the Covid-19 pandemic.

Prime Bank, one of the top private banks of the country, has already received around 100 applications for loans under the stimulus package of Tk30,000 crore, and a larger number of applications for small loans under the stimulus package of Tk20,000 crore.

"Banks will start operations in full swing from Sunday, so we have to make preparations to operate all types of business. We have received many loan appreciations under the stimulus packages," the managing director of the bank, Rahel Ahmed, told The Business Standard.

"We expect we can disburse loans from Sunday. We have scrutinised some of the applications, while some others are under process," he added.

To curb the spread of the Covid-19 pandemic, the government had declared general holidays from March 26 that ended on Saturday.

During this two-month period, businesses faced big trouble because of restrictions on people's movement and the shutting down of almost all trade and services except for some emergency ones.

There was no public transportation, and markets and shopping malls have missed big business during the country's largest religious festival of Eid-ul-Fitr for which traders wait for a year.

Facing such disruptions, Navana Group, a big business conglomerate, recently applied for a Tk1,200 crore loan under the stimulus package of Tk30,000 crore.

The government has declared around Tk1 lakh crore stimulus packages to provide low cost funds for the revival of all types of businesses and to help them overcome their losses.

In April, the central bank issued guidelines for banks to form a Tk30,000 crore fund for large industries, and another Tk20,000 crore fund for small and medium industries. The interest of the loans will be maximum 9 percent of which 4.5 percentage point will be provided by the government and the rest of the interest by the customers.

The Bangladesh Bank also formed two different refinance schemes for supporting banks with half of those packages.

Syed Mahbubur Rahman, managing director of Mutual Trust Bank, said, "In the last one and half months, we have received a lot of applications from businesses. But we are not allowing any loan defaulters to avail this low cost fund as guided by the central bank."

Another top executive of a private bank said, "Disbursing loans is an ongoing process. For the last few months, the bank has only received loan applications under the stimulus packages."

Recently, 14 banks and non-bank financial institutions signed a deal with the central bank to disburse loans under the refinance schemes.

The central bank also instructed banks to form a fund to disburse Tk5,000 crore agri-loans at 4 percent interest and Tk3,000 crore for microcredit without any collateral.

The Bangladesh Bank also formed a Tk5,000 crore fund for pre-shipment loans for the export sector.

Economy / Top News

Banks / disbursement / stimulus loans / Stimulus Plan / stimulus / COVID-19 in Bangladesh / Coronavirus in Bangladesh

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Stories beneath the trade data
    Stories beneath the trade data
  • India also will be ashamed of FM Momen’s statement: Quader
    India also will be ashamed of FM Momen’s statement: Quader
  • Logo of BNP
    BNP slams Momen for 'asking India to keep PM Hasina's govt in power'

MOST VIEWED

  • Mobile banking transactions hit second-highest in June
    Mobile banking transactions hit second-highest in June
  • Unusual profits from dollar trading: BB seeks explanations from six banks’ MDs
    Unusual profits from dollar trading: BB seeks explanations from six banks’ MDs
  • Eight more banks make unusual gains from forex dealings
    Eight more banks make unusual gains from forex dealings
  • NCC Bank observes National Mourning Day
    NCC Bank observes National Mourning Day
  • SIBL opens twenty-eight new agent banking outlets
    SIBL opens twenty-eight new agent banking outlets
  • Infographic: TBS
    Pandemic led dramatic shift from cash to digital remittances: Brac Bank study

Related News

  • Eight more banks make unusual gains from forex dealings
  • Unusual profits from dollar trading: BB seeks explanations from six banks’ MDs
  • Eight more banks make unusual gains from forex dealings
  • Banks settle LCs at Tk107 per dollar
  • Removal of Treasury chiefs: Panic or justified?

Features

Illustration: TBS

China-Bangladesh currency clearance agreement can increase trade by 'an unimaginable scale': Li Jiming, Ambassador of China

18h | Interviews
Postcrossing (which connects people through its website) is a system built for postcard enthusiasts, where anyone can sign up and create an account for free. Photo: Noor A Alam

Postcrossers: Reviving a lost art with strangers and postcards

17h | Panorama
We will be facing massive, recurring challenges in the coming years no matter what. Photo: Reuters

Holes in the recession story

1d | Panorama
Illustration: Bloomberg

What nonmonogamy can teach moonlighters and job jugglers

1d | Pursuit

More Videos from TBS

Amazing folding smartphone

Amazing folding smartphone

9h | Videos
How Russia gets advantage for geographical location?

How Russia gets advantage for geographical location?

11h | Videos
Is textbooks enough for students?

Is textbooks enough for students?

11h | Videos
134-year-old traditional sandwich of New York

134-year-old traditional sandwich of New York

16h | Videos

Most Read

1
From left Afzal Karim, Murshedul Kabir and Mohammad Jahangir
Banking

Sonali, Agrani and Rupali banks get new MDs

2
Russia now offers Bangladesh finished oil
Energy

Russia now offers Bangladesh finished oil

3
Photo: TBS
Bangladesh

5 crushed to death as BRT girder falls on car in Uttara

4
Photo: Collected
Economy

Bangladesh is not in a crisis situation: IMF

5
Migrant workers. Photo: UNB
Migration

Can Bangladesh benefit from Canada’s 10 lakh job vacancies?

6
Eight more banks make unusual gains from forex dealings
Banking

Eight more banks make unusual gains from forex dealings

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2022
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]