Jute mills, traders benefit from BB refinancing scheme

The refinancing scheme of Bangladesh Bank (BB) for the jute sector has received huge response from borrowers, as banks have already disbursed Tk 3.43 billion revolving loans since its launch in June 2014, reports BSS.
The central bank started the refinancing scheme with a fund of Tk 2.0 billion to support the jute sector with a view to bringing back its past glory.
Eighteen private and public commercial banks were selected for channelling the fund to jute mills, raw jute traders and exporters.
The banks are Sonali Bank, Rupali Bank, Agrani Bank, Janata Bank, Basic Bank, UCBL, IFIC Bank, National Bank, Prime Bank, AB Bank, Mercantile Bank, Uttara Bank, Bank Asia, Standard Bank, One Bank, The City Bank, NRBC Bank and Rajshahi Krishi Unnayan Bank.
"Of the allocated fund, the banks initially disbursed Tk 1.75 billion. But the amount of disbursement has increased to Tk 3.43 billion due to huge demand from borrowers," said an official of BB.
He said the central bank allocated Tk 776.3 million for public jute mills, Tk 936.7 million for private jute mills and Tk 287 million for raw jute traders and exporters at 5 per cent interest rate to the banks.
"The banks initially disbursed Tk 708.3 million to the public jute mills, Tk 845 million to the private jute mills and Tk 199 million to the jute mills and raw jute traders and exporters," he added.
The BB official said the banks recovered Tk 2.37 billion and the present balance of the scheme is Tk 938.5 million.