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BB disburses Tk 2.05b to capital market refinancing scheme

FE Report | May 29, 2022 00:00:00

Bangladesh Bank (BB) has disbursed Tk 2.05 billion to the capital market refinancing scheme to enhance liquidity support in the capital market through market operators, officials said.

The central bank on Thursday disbursed the fund on receipt of a letter from the supervisory committee of the refinancing scheme.

The fund came following the government's announcement regarding extension of tenure of the revised refinancing scheme until December 2027 to help revamp the capital market which recently saw persistent downward trend.

The fund will be disbursed among market operators including Investment Corporation of Bangladesh (ICB) with an interest rate of 4.0 per cent.

The recent downward of the capital market has prompted the central bank to disburse the fund on an urgent basis.

DSEX, broad index of Dhaka Stock Exchange (DSE), lost 511 points to close at 6187 on Wednesday in 11 sessions executed since May 10.

Before receiving Tk 2.05 billion from the central bank, the capital market refinancing scheme approved applications of market operators which sought Tk 220 million from the scheme.

"Tk 220 million has already been disbursed among market operators. And Tk 2.05 billion will be disbursed soon based on the demand of market operators," said Mohammad Saifur Rahman, chief of the capital market refinancing scheme.

The government launched the capital market refinancing scheme worth Tk 9.0 billion in 2013 to reduce sufferings of the small investors who were affected during the 2010-11 market crash.

Of the Tk 9.0 billion, the state-run ICB received Tk 8.56 billion in three installments based on the market operators' demand.

The scheme also realised Tk 1.53 billion as interest against the fund disbursed among market operators.

The supervisory committee has been urging the government to make the scheme perpetual for the sake of the capital market.

Finally, the government extended tenure of the scheme in last week following the recent downward trend of the market.

As a result, the total size of the fund has stood at Tk 10.09 billion, including the interest worth Tk 1.53 billion received from the market operators.

The amount of the fund revolved before extension of the scheme was Tk 14.65 billion and the amount at present has stood at Tk 14.87 billion as Tk 220 million was disbursed among market operators in last week.

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