Bangladesh Bank has set up a refinancing fund of Tk 2,000 crores for the development of the country’s shipbuilding industry. The fund has been set up under the Shipbuilding Industry Development Policy-2021. Bangladesh Bank issued a circular in this regard on Thursday (26 May).
In the circular, the central bank said the fund will provide loans for the development and management of the shipbuilding industry, including export-oriented shipbuilders and local industries. Under the fund, loans will be available at a maximum interest rate of 4.5%. And banks will be able to avail refinancing facility from Bangladesh Bank at 1% interest.
However, the central bank has imposed some restrictions on the disbursement of these loans. It said that no one can take loans from this fund for the construction of dockyards, purchases of land, or leases. No other loan or loan interest can be repaid with the loan.
In the case of fund management, participating banks and all scheduled banks operating in Bangladesh will be considered eligible for refinancing facilities. Banks interested in refinancing will have to enter into a partnership agreement with Bangladesh Bank.
According to the circular, banks will be able to disburse loans for a maximum period of 12 years (3 years + 9 years) with a maximum grace period of three years as per customer demand.
A bank will be able to take a working capital loan from its funds for a period of one year. In this case, the bank will give the loan based on the banker-customer relationship as per the prevailing rules and will be able to renew it if the business transaction is satisfactory. However, through renewal, a customer will be able to avail of the benefits declared under this fund for a maximum period of three years. Bangladesh Bank will be able to decrease or increase the benefit period under this fund for the loan given for working capital according to the need.
Deadline for submission of application for refinancing to provide loan or investment under this fund in favour of a particular customer, application for availability of funds has to be submitted to Bangladesh Bank by 30 June 2024.
