BHBFC seeks Tk 6.0b fund

The capital-starved Bangladesh House Building Finance Corporation (BHBFC) has sought a Tk 6.0-billion fund from the finance ministry and Bangladesh Bank for continuation of its housing loan programme.
BHBFC in separate proposals on Tuesday sought Tk 5.0 billion from financial institutions division of the finance ministry and Tk 1.0 billion from Bangladesh Bank (BB).
"BHBFC is failing to disburse any new housing loans due to capital shortage . . . we have sought fund from the bank and financial institutions division of the finance ministry and BB," BHBFC managing director Dr Md Nurul Alam Talukder told BSS.
He said BHBFC sent letter to the bank and financial institutions division seeking Tk 5.0 billion.
Besides, in another letter to BB, it requested the central bank to buy the government-guaranteed debentures worth Tk 1.0 billion floated with a aim of strengthening BHBFC's housing loan programme, he added.
The BHBFC provides house-building loans in the capital Dhaka and Chittagong city at 12 per cent interest rate, while it is only 10 per cent for other cities.
According to BHBFC, the primary source of its fund is the paid-up capital contributed by the government.
The authorised capital is Tk 1.10 billion and during 2010-11 the total paid-up capital stood at Tk 1.10 billion.
Besides, the corporation raised its fund by selling government-guaranteed debentures with the assistance of the finance ministry to Bangladesh Bank and other commercial banks.