BB adds Tk 570m to refinancing fund for housing loan
Friday, 22 October 2010
Siddique Islam
Bangladesh Bank has added Tk 570 million more to its refinancing fund for housing loan to settle the claims of the eligible clients.
The Tk 7.0 billion fund has almost been exhausted as the central bank has disbursed housing loans worth Tk 6.84 billion through the commercial banks and non-banking financial institutions (NBFIs).
"We've raised the amount under the refinancing fund aiming to help the clients through settlement of their due claims," an executive director of the Bangladesh Bank (BB) told the FE.
He also said the BB's board of directors approved the additional allocation in a meeting held at the central bank Thursday with governor Atiur Rahman in the chair.
The additional allocation came against the backdrop of suspension of loan disbursement under the refinancing fund since May 1 this year by the central bank to curb inflationary pressures on the economy.
Prior to the suspension, the central bank paid 30 per cent of required loans under the refinancing fund in the month of April while the rest 70 per cent was provided to the clients by the banks and financial institutions concerned.
"We had received around 600 requests for such loans only in April last. But we did not fulfill their demands mainly due to the lack of fund under the refinancing scheme," a BB senior official said.
The fund was formed in July 18, 2007 with an initial allocation of Tk 3.0 billion to be disbursed over a period of three years to meet one of the basic needs of the people.
"The refinancing scheme has been suspended to check inflationary pressure on the economy by discouraging credit flow to the less productive sectors," General Manager of the SME and Special Programmes Department of BB Sukamal Sinha Choudhuary told the FE. He also said the central bank has taken the latest move to satisfy the demand of the clients.
Another BB official said the central bank has imposed restriction on purchase or lease of fixed assets including land by the commercial banks before suspension of the refinancing scheme.
On January 25 this year, the central bank imposed restriction on purchase or lease of fixed assets including land, saying that the commercial banks would have to take prior approval from the BB to buy or take lease such assets.
Bangladesh Bank has added Tk 570 million more to its refinancing fund for housing loan to settle the claims of the eligible clients.
The Tk 7.0 billion fund has almost been exhausted as the central bank has disbursed housing loans worth Tk 6.84 billion through the commercial banks and non-banking financial institutions (NBFIs).
"We've raised the amount under the refinancing fund aiming to help the clients through settlement of their due claims," an executive director of the Bangladesh Bank (BB) told the FE.
He also said the BB's board of directors approved the additional allocation in a meeting held at the central bank Thursday with governor Atiur Rahman in the chair.
The additional allocation came against the backdrop of suspension of loan disbursement under the refinancing fund since May 1 this year by the central bank to curb inflationary pressures on the economy.
Prior to the suspension, the central bank paid 30 per cent of required loans under the refinancing fund in the month of April while the rest 70 per cent was provided to the clients by the banks and financial institutions concerned.
"We had received around 600 requests for such loans only in April last. But we did not fulfill their demands mainly due to the lack of fund under the refinancing scheme," a BB senior official said.
The fund was formed in July 18, 2007 with an initial allocation of Tk 3.0 billion to be disbursed over a period of three years to meet one of the basic needs of the people.
"The refinancing scheme has been suspended to check inflationary pressure on the economy by discouraging credit flow to the less productive sectors," General Manager of the SME and Special Programmes Department of BB Sukamal Sinha Choudhuary told the FE. He also said the central bank has taken the latest move to satisfy the demand of the clients.
Another BB official said the central bank has imposed restriction on purchase or lease of fixed assets including land by the commercial banks before suspension of the refinancing scheme.
On January 25 this year, the central bank imposed restriction on purchase or lease of fixed assets including land, saying that the commercial banks would have to take prior approval from the BB to buy or take lease such assets.