BB cuts interest rate to 6.0pc

The central bank has slashed interest rate on ADB-funded refinancing scheme by 3.0 percentage points aiming to help the Covid-19-hit cottage, micro and small enterprises (CMSEs), officials said.

As per the revised policy, participating banks and non-banking financial institutions are allowed to charge their clients maximum 6.0 per cent instead of 9.0 per cent earlier under the refinancing scheme, according to a notification issued by the Bangladesh Bank (BB) on Monday.

The revised interest rate on such loans under the scheme came into effect on November 18, 2020, it added.

On the other hand, lenders are eligible to borrow funds from the central bank under the scheme with paying 2.0 per cent interest instead of 4.0 per cent earlier, according to the officials.

Earlier, the government along with the Asian Development Bank (ADB) formed a refinance scheme worth around Tk 20 billion to facilitate the CMSMEs of Bangladesh.

"We've already disbursed around Tk 10 billion through 33 participating banks and NBFIs from the refinancing scheme," a senior BB official told the FE.

He also said interested entrepreneurs particularly those outside Dhaka and Chattogram city areas are eligible for such scheme.

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