PM announces Tk 72,750cr stimulus package

Thursday, 04 Jun 2020 05:46:22 pm


Sunday, 05 Apr 2020 08:10:59 pm
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PM announces Tk 72,750cr stimulus package

PM announces Tk 72,750cr stimulus package

Prime Minister Sheikh Hasina declared Tk 72,750 crore stimulus package in order to mobilise the country's economy during the coronavirus pandemic.

The prime minister came up with the announcement while addressing a press conference at her official residence Gono Bhaban on Sunday (April 5) morning.

It was arranged to brief journalists about the possible impacts of the coronavirus outbreak on the national economy and the ways to face the challenges in the coming days.

In the four new packages, Sheikh Hasina said her government will provide working capital of Tk 30,000 crore for the COVID-19 affected industries and service sector institutions.

The commercial banks will provide the loans from their own resources to the industries or business entities concerned on the basis of bank-client relationship.

The interest rate of this loan facility will be nine percent, of which the loan taker will provide 4.5 percent while the government the rest of the interest to the respective bank as subsidy.

In the second package, which will be for the small and medium industries, the government will provide Tk 20,000 crore as working capital.

The commercial banks will provide the loans from their own resources to the industries or business entities concerned on the basis of bank-client relationship.

Here the interest rate will be the same as nine percent, but the four percent interest will be borne by the loan-taking industry while the rest of the money will be paid by the government to the respective bank as subsidy.

In the third package, the Bangladesh Bank will expand its EDF (Export Development Fund). Aiming to increase the facility for importing raw materials under the Back-to-back LC system, the central bank will enhance its EDF facility from US dollar 3.5 billion to US dollar 5 billion.

As a result, some Tk 12,750 crore, equivalent to US dollar 1.5 billion, will be added to the respective fund.

The current interest rate of the EDF is LIBOR (London Inter-Bank Offer Rate) + 1.5 percent (which is actually 2.73 percent). It will be decreased to two percent, she said.

For the last package, the Prime Minister mentioned that Bangladesh Bank will introduce a new loan facility system titled 'Pre-shipment Credit Refinance Scheme'. The amount of this loan facility will be Tk 5,000 crore in total where the interest rate will be seven percent.

Earlier, the Prime Minister announced a stimulus package of Tk 5,000 crore for export-oriented industries to fight the adverse impact of coronavirus on the country's economy. This money will be used for providing the salaries and wages of workers and employees only.