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Move to expand housing fund

FE Report | June 21, 2015 00:00:00

The government has taken an initiative to expand housing loan facilities across the country, officials said.

As part of the move, the steering committee of the government's housing fund (Grihayan Tahbil) has primarily decided to enlist 117 more non-government organisations (NGOs) for disbursing the fund.

The committee will scrutinise the activities of the 117 NGOs through field inspection for preparing a final list.

Currently, some 523 NGOs are listed partners of the fund for loan disbursement. The government started the housing fund operations involving Tk 500 million in fiscal year (FY) 1997-98. The fund is operated by Bangladesh Bank (BB).  

Some Tk 2.98 billion has been allocated to the fund from the budgetary allocation since its inception. Some Tk 1.60 billion was released for the fund until April last.

About Tk 1.71 billion has been released to the partner NGOs for disbursement until March last. Of the amount, about Tk 1.20 billion has been recovered.

Over 61,092 houses were built and about 0.3 million beneficiaries were settled under the fund.

Some Tk 2.57 billion and Tk 55 million has been left with the fund as FDR and SDR respectively until March. Thus, it will not be possible to disburse necessary funding to the projects being implemented. So, an allocation will be needed for the fund in the next budget, sources said.

Some Tk 20 million has been sanctioned to the "Ghore Fera Kormo Suchi" under Bangladesh Krishi Bank (BKB) from the fund. Some 10 million has been released to the programme.

Some Tk 246 million has been sanctioned from the fund to construct a hostel for ultra poor women labourers. Besides, a process is underway to finance the hostel construction project-2 in Dhaka.  The government has planned to build separate dormitories for female workers in the garment and textile sector.

"We are taking up new housing projects with the remaining surplus fund," executive director of Bangladesh Bank and member secretary of the steering committee M Mahfuzur Rahman told the FE on Saturday.

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