The central bank is set to announce two funds worth US$500 million for attaining maximum economic growth through boosting medium and long-term investment, particularly in productive sectors.
Bangladesh Bank (BB) Governor Dr. Atiur Rahman is expected to announce the funds while unveiling its first half-yearly monetary policy for the fiscal year (FY) 2015-16 on July 30 aiming to help real sectors for achieving sustainable economic growth through curbing inflation.
The central bank chief disclosed this while addressing at a pre-monetary policy press consultation, held at a city's hotel Thursday.
At the consultation, most of the journalists recommended to the BB to continue its existing 'cautious' monetary policy for the first half of the FY 16.
They also suggested that the BB should make its monetary policy in such a manner so that it helps boost export earnings, particularly from the Eurozone.
One fund, amounting to $300 million, will be mobilised with help of the World Bank to facilitate manufacturers on long-term basis, according to the BB governor.
"Any manufacturer will be eligible to receive the low-cost fund to set up new factory or balancing, modernisation, rehabilitation and expansion (BMRE) of their industrial units," Dr. Rahman explained.
He also said another fund worth $200 million will be formed with the central bank's own resources to facilitate green financing in different productive sectors including textile and leather.
"We'll continue the ongoing financial inclusion initiatives through boosting investment in small and medium enterprises across the country," the BB governor hinted.
Earlier on June 05 last, the World Bank approved the soft loan under the Financial Sector Support Project (FSSP) to improve
financial market infrastructure, the regulatory and oversight capacity of the BB and the access to long-term financing for private firms in Bangladesh.
Talking to the FE, a BB senior official said the central bank is now working to start disbursement of loan through the commercial banks by September 2015.
The central bank is likely to issue a directive in this connection in the second week of August, the BB official added.
The BB has taken the latest moves to increase investment, particularly in productive sectors, for achieving maximum economic growth by the end of the FY 16, the central banker explained.
Currently, the central bank has a short-term Export Development Fund (EDF) involving $ 2.0 billion for the country's exporters.
The EDF loans from the BB are payable by the banks upon receipt of export proceeds within 180 days from the date of disbursement, extendable by the central bank up to 270 days in case of a longer period for repatriation of export proceeds.
"The BB, which believes in macro developmental central banking, is committed to augmenting financial inclusion to make social production process more participative and thus to make our economic growth robust and sustainable," Biru Paksha Paul, chief economist of the BB, said in his opening speech.
BB Deputy Governor Abu Hena Mohd. Razee Hassan and Executive Director of the BB Subhankar Saha also spoke on the occasion.
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