BB approves Tk 30b loan for ICB

Bangladesh Bank has approved a Tk 30 billion loan for the Investment Corporation of Bangladesh, or ICB, to help ease its liquidity crunch and enhance its investment capacity in the stock market, reports bdnews24.com.

The decision was communicated to the state-run investment body on Wednesday.

While the interest rate has been set at 10 per cent per annum-lower than the current deposit and loan rates in the country-the ICB had hoped for a lower rate.

The central bank's current policy interest rate is 10 per cent, increased periodically to curb inflation.

The government has guaranteed the loan, which means if ICB fails to repay, the government will cover the cost.

On November 7, the finance ministry informed Bangladesh Bank of the government's agreement to act as the loan guarantor.