Banks seek Tk 18 million as interest subsidy

The banks which have disbursed working capital to industrial and service sector units under the government's Covid-19 recovery package have sought over Tk 18 million as interest subsidy in the April-June quarter.
They have provided the loans under the Tk 300 billion incentive package which was announced by the government on April 5 to provide working capital at on interest rate of 9.0 per cent.
Of the 9.0 per cent interest, the borrowers will pay 4.5 per cent and the government will provide 4.5 per cent as a subsidy to the banks which are disbursing the loans.
Nine public and private banks have recently submitted documents relating to loan disbursement to the central bank seeking the interest subsidy.

Bangladesh Bank has forwarded a letter to the finance ministry for releasing the fund.
Of the total sum, Sonali Bank has sought Tk 15.56 million, Agrani Bank Tk 97,321, Exim Bank Tk 1.059 million, Trust Bank Tk 907,896, City Bank Tk 438,750, Prime Bank Tk 72,786, IFIC Bank Tk 102,875, Eastern Bank Tk 197,020 and Mercantile Bank Tk 19,125.
A senior finance division official told the FE on Tuesday that the government announced the Tk 300 billion incentive package to provide working capital to the industrial units and services sector to help face the pandemic-induced multifarious effects successfully.
The package was aimed at spurring economic activities, employing workers through reopening of the factories and helping the entrepreneurs gain compatibility, he said.
Acknowledging that they received such a proposal from the central bank, the official said after necessary scrutiny, the fund would soon be released in favour of Bangladesh Bank to provide the money to the banks which have disbursed the working capital.
He said the government asked all the banks concerned to expedite the implementation of the Tk 1.0 trillion Covid-19 incentive packages.
"We are monitoring which banks are not complying with the ministry's orders," he said, adding that some businesses have alleged that they are not getting adequate loans under the Covid-19 recovery package.
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