Merchant bankers, stock brokers get BB re-financing fund

Mohammad Mufazzal | Published: June 02, 2014 00:00:00 | Updated: November 30, 2024 06:01:00

The capital market re-financing fund has finally lured merchant bankers and stock brokers following relaxation of its terms and conditions, officials said.
The officials of the Bangladesh Securities and Exchange Commission (BSEC) said about two-thirds of the fund, which was disbursed as first installment by the Bangladesh Bank (BB), has already been disbursed.
"According to the figure as on May 29 last, the state-run Investment Corporation of Bangladesh (ICB) has disbursed Tk 2.04 billion out of Tk 3.0 billion under the capital market re-financing scheme," Mohammad Saifur Rahman, a BSEC executive director, told the FE.
Rahman said the ICB disbursed Tk 2.04 billion against the portfolios of 8,260 investors who were affected during the stock market debacle that occurred in December(2010)-January (2011) period.
"The remaining funds will be disbursed gradually," Mr Rahman added.
Under the re-financing scheme, the ICB Capital Management received Tk 844.8 million, while the Janata Capital Tk 407.8 million, the IIDFC Securities Tk 201.5 million, the Far East Stock and Bond Tk 187 million, the International Leasing Tk 159.9 million, the BMSL Investment Tk 84 million, the IDLC Investments Tk 74 million, the IIDFC Capital Tk 47 million and the Green Land Securities Tk 11.1 million.
Mr Rahman said after the completion of the disbursement of first installment worth Tk 3.0 billion, the ICB will apply for the next installments of Tk 9.0 billion capital market re-financing fund.
The ICB official concerned could not talk about the latest development of the re-financing scheme due to his inconvenience.
The Bangladesh Bank (BB) released Tk 3.0 billion out of the Tk 9.0 billion capital market re-financing fund by July 2013 with an interest of 9.0 per cent. The rest Tk 6.0 billion of the fund was supposed to be disbursed in two more installments.
But the fund worth Tk 3.0 billion remained cent per cent undisbursed, mainly because of tough conditions set for borrowers, even after eight months of its release as the borrowers were reluctant to avail the fund facility by giving personal guarantee of their directors.
Recently, the Ministry of Finance (MoF) waived personal guarantee of the directors of borrowers following a plea made by the securities regulator.