ICB for releasing rest Tk 3b

Syful Islam | Published: April 17, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

The Investment Corporation of Bangladesh (ICB) urged the government recently to release Tk 3.0 billion from bailout package to help investors who were affected during the stock market debacle in December 2010-January 2011 period, officials said.
This is the third instalment of Tk 9.0 billion package which the government approved in June 2013 in a bid to give the kiss of life to the moribund capital market.
In two separate instalments the government had already released Tk 6.0 billion from the stock market rejuvenation package.
A senior official at the ministry of finance told the FE Thursday that ICB has made the request to Bangladesh Bank, through which the fund is being given. Now the central bank will send note to the finance ministry for release of the third instalment of the package from government coffer.Â Â Â Â Â Â Â Â
He said affected investors of stock market debacle got relief by availing the low cost loan from the fund. "Prices of many shares now stand at below their face value. If someone now buys shares for long period he or she will get good return."
Asked whether the bailout package really helped the affected investors who lost a large amount of money during the free fall of share prices nearly four years back, the official said, "You can't expect good profit very quickly. You have to wait for that."Â Â
According to the ICB officials, until first week of April some Tk 4.673 billion loan has been disbursed among 19,328 affected small investors of 29 merchant banks and stock brokerage houses.
Besides, disbursement of another Tk 486.40 million among 1,376 small investors is underway.
They said until now approval is given to disburse Tk 5.269 billion among 21,069 affected investors from Tk 6.0 billion released by the government from the fund. Some 22,634 affected investors had expressed willingness to avail Tk 5.752 billion as loan from the refinancing scheme.
Among merchant banks and brokerage firms, ICB Capital Management has so far received Tk 844.8 million, while ICB Tk 566.7 million, Janata Capital and Investment Tk 407.8 million, IIDFC Securities Tk 201.5 million, Fareast Stocks and Bonds Tk 187.0 million, International Leasing Tk 159.9 million, NCCB Securities and Financial Services Tk 114.4 million, BLI Capital Tk 116.1 million and LankaBangla Investments Tk 109.0 million.
ICB Capital Management has also received Tk 741.8 million in the second phase.
Officials said affected investors will be able to apply for refinancing facility until June 30 this year. Due to less-than expected investors' response and tough conditionality, the securities regulator earlier extended the timeframe for fourth time to apply for re-financing facility.
Only the affected investors, who had below Tk 1.0 million investment in the capital market during the stock market debacle, have been offered to get loan from the capital-market refinancing scheme.
Â Â Â syful-islam@outlook.com