Govt raises working capital loan fund to Tk 400b

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DHAKA, Oct 29, 2020 (BSS) – The government has raised the amount of
working capital loan for Covid-19 affected industries and service
sectors under the Prime Minister’s announced Economic Stimulus Package
to Taka 400 billion from Taka 330 billion.

Initially, the loan package for such purpose was Taka 300 billion
when it was first announced on April 5 this year under the Economic
Stimulus Package, said a Bangladesh Bank (BB) circular issued today.

Later, the fund was enhanced to Taka 330 billion to facilitate the
salary payment of the export-oriented garment industries.

The interest rate of the loans under the package will be 9 percent
of which the government will provide 4.5 percent as subsidy.

As per the circular, now, this fund has been increased to Taka 400
billion to facilitate the loan or investment support to the affected
industries and service sector.

The circular also said beside the local industries, the increased
fund of Taka 70 billion will be applicable for loan or investment
facilities for the Covid-19 affected A, B and C type foreign and
joint-venture industries in areas under Bangladesh Economic Zones
Authority (BEZA), Bangladesh Export Processing Zones Authority (BEPZA)
and Bangladesh Hi-Tech Park Authority (BHTPA).

The initiative was taken to support the affected foreign and joint
venture industries under such authorities in order to strengthen their
financial capabilities to continue production and employment.