BB sets deadline to apply for refinancing tourism sector’s stimulus loans

Scheduled banks in the country will be able to apply for refinancing loans they have disbursed under the Covid-19 stimulus package, announced to pay salaries and allowances to employees of hotels, motels and theme parks in the tourism sector, from 1 November this year to 31 October next year.

On Monday, the Bangladesh Bank issued a circular to this effect and sent it to the managing directors of all scheduled banks.

According to the circular, banks would have to apply to the general manager of the central bank's Department of Off-site Supervision to get refinanced.

The central bank announced an incentive package of Tk1,000 crore to pay salaries and allowances to employees of hotels, motels, theme parks in the tourism sector until 15 July this year. Entrepreneurs in the tourism sector will be able to avail loans under this package for a period of one year at 4% interest.

According to the Bangladesh Bank circular, owners of hotels and motels will be able to take working capital loans at 4% interest under the scheme. Tk1,000 crore has been allocated for this purpose, while the central bank  will provide a refinancing facility of Tk500 crore. Owners of hotels and motels will get this low-interest loan for one year.