The disbursement of funds under the capital market re-financing scheme is likely to be started Sunday as the toughest condition has been waived considering the utilisation of fund facility, officials said.
They said the state-run Investment Corporation of Bangladesh (ICB) by this time has issued sanction letters for the fund worth Tk 3.45 billion sought by different merchant banks and brokerage firms.
"After the issuance of sanction letter, the borrowers are required to submit some papers such as personal guarantee of their directors. But the fund disbursement was not possible as the directors refused to give personal guarantee for the funds of affected investors," Mohammad Saifur Rahman, a BSEC executive director, told the FE.
He said now the obstacle of disbursing the funds has been removed as the government has waived the condition of personal guarantee.
"The process of disbursing funds against the applications of some borrowers has already been completed. We hope such funds will be disbursed Sunday. The other borrowers will get funds soon," said Rahman, also a convener of the supervisory committee.
The ministry of finance (MoF) Tuesday sent a letter to the Bangladesh Securities and Exchange Commission (BSEC) stating that the "personal guarantee" against the disbursement of the capital market re-financing funds has been waived.
Meanwhile, the supervisory committee of the capital market re-financing scheme Wednesday extended the timeframe for submitting applications by merchant banks and brokerage firms for fund facility up to June 30 this year.
The Bangladesh Bank (BB) released Tk 3.0 billion out of Tk 9.0 billion capital market re-financing fund in July, 2013 with an interest of 9.0 per cent.
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