Stock borrowers repay Tk 1.0b to Bangladesh Bank

Borrowers, who took out loans from a central bank refinance scheme, have refunded more than Tk 1.0 billion, officials said.

The Investment Corporation of Bangladesh (ICB) had received Tk 6.0 billion in two installments under the capital market re-financing scheme, introduced by the Bangladesh Bank.

The fund was disbursed among margin loan providers such as merchant banks and stock brokers who applied for re-financing support to the ICB.

Mohammad Saifur Rahman, an executive director of the securities regulator, said out of Tk 6.0 billion, Tk 4.67 billion have been disbursed against the portfolios of victims of the stock market crash.

“We hope the remaining fund will be disbursed by June next. The last installment worth Tk 3.0 billion is likely to be released soon,” Mr Rahman said.

In 2013, finance minister AMA Muhith approved a fund worth Tk 9.0 billion to help breathe new life into the country’s capital market.

Investors were crushed in the stock market debacle of 2010-2011.

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