Bangladesh Bank Launches Tk 20,000 Crore Scheme to Revive Closed Businesses

Under the “Pre-Financing Support Scheme for Closed Industrial and Service-Sector Enterprises,” eligible businesses will receive financing through commercial banks.

The maximum interest rate for borrowers has been set at 7 per cent. Borrowers will also receive a six-month grace period, during which they will not be required to make interest payments.

Bangladesh Bank’s Banking Regulation and Policy Department-1 issued a circular outlining the scheme on Thursday (September 17).

According to the circular, Bangladesh Bank will provide advance funding to participating banks, enabling them to finance eligible businesses. The banks will pay the central bank 4 per cent interest on the funds.

Banks will not have to make interest payments during the first six months. Once the grace period ends, they must pay interest to Bangladesh Bank quarterly, including the outstanding interest from the first two quarters.