BB to raise number of banks, FIs in IPFF re-financing scheme
Tuesday, 11 May 2010
FE Report
The central bank will strengthen its re-financing facility with US$250 million disbursement target for infrastructure development in six key sectors including power through increasing the number of participating commercial banks and financial institutions.
The Bangladesh Bank (BB) has taken the latest move after the approval of a fund worth US$257 million by the World Bank (WB) for improving infrastructure facilities through the Investment Promotion and
Financing Facility (IPFF) Project of the central bank on May 4.
"We expect that a financing agreement would be signed with the World Bank by the end of this month for receiving the fund under the project, of which $7.0 million will be included as technical assistant," a BB senior official told the FE Monday.
The central bank will invite 10 more banks and non-banking financial institutions (NBFIs) today (Tuesday) to submit their applications with all necessary documents for being eligible to disburse the fund, the BB official added.
Currently, four private commercial banks (PCBs) and seven NBFIs are enlisted with the IPFF as participatory financial institutions for disbursement of the fund to their clients.
"Three more PCBs - the City bank Limited, BRAC Bank Limited and One Bank Limited - may get final approval shortly to be included in the list of selected banks for disbursing the fund," the official said, adding that the PCBs have already obtained no objection certificate from the World Bank.
"The fresh fund will supplement the resources of local financial markets to provide long-term finance for the infrastructure projects that are beyond the capacity of the local financial institutions," the central bank official noted.
eady been identified for financing under the IPFF, are power generation including captive power plant, port development including internal container terminal, environment, highways and expressways, airports, and water supply and distribution.
"No more fund is available for on-lending purpose with two years left of the IPFF project period. So another $257 million from the World Bank is under process as additional financing to the IPFF," he noted.
In 2007, the central bank launched the five-year-term IPFF project with $50 million fund, provided by the World Bank through public-private participation process.
"Almost 97 per cent of the fund has so far been utilised for financing seven power plants, which have been able to add 178 megawatt (MW) power to our national grid," the BB official added.
The central bank will strengthen its re-financing facility with US$250 million disbursement target for infrastructure development in six key sectors including power through increasing the number of participating commercial banks and financial institutions.
The Bangladesh Bank (BB) has taken the latest move after the approval of a fund worth US$257 million by the World Bank (WB) for improving infrastructure facilities through the Investment Promotion and
Financing Facility (IPFF) Project of the central bank on May 4.
"We expect that a financing agreement would be signed with the World Bank by the end of this month for receiving the fund under the project, of which $7.0 million will be included as technical assistant," a BB senior official told the FE Monday.
The central bank will invite 10 more banks and non-banking financial institutions (NBFIs) today (Tuesday) to submit their applications with all necessary documents for being eligible to disburse the fund, the BB official added.
Currently, four private commercial banks (PCBs) and seven NBFIs are enlisted with the IPFF as participatory financial institutions for disbursement of the fund to their clients.
"Three more PCBs - the City bank Limited, BRAC Bank Limited and One Bank Limited - may get final approval shortly to be included in the list of selected banks for disbursing the fund," the official said, adding that the PCBs have already obtained no objection certificate from the World Bank.
"The fresh fund will supplement the resources of local financial markets to provide long-term finance for the infrastructure projects that are beyond the capacity of the local financial institutions," the central bank official noted.
eady been identified for financing under the IPFF, are power generation including captive power plant, port development including internal container terminal, environment, highways and expressways, airports, and water supply and distribution.
"No more fund is available for on-lending purpose with two years left of the IPFF project period. So another $257 million from the World Bank is under process as additional financing to the IPFF," he noted.
In 2007, the central bank launched the five-year-term IPFF project with $50 million fund, provided by the World Bank through public-private participation process.
"Almost 97 per cent of the fund has so far been utilised for financing seven power plants, which have been able to add 178 megawatt (MW) power to our national grid," the BB official added.