Bangladesh Bank clarifies instructions to ease refinance process for banks

The Bangladesh Bank on Thursday issued a clarification on instruction regarding refinancing scheme for supporting stimulus package of Tk30,000 crore, stating that the tenure of the refinance schemes would expire on August 3, 2023 as its tenure started on August 4 this year.

In a circular in this regard, the central bank also clarified that it will collect the instalments against the refinance fund from banks on quarterly basis.

The central bank said it clarified the instructions to ease the refinance process for banks.

The central bank has launched a Tk15,000 crore refinance fund with a view to support the banks implementing the Tk30,000 crore in stimulus package.

The package was launched for the large-scale industries and service sector.

Besides, the central bank also launched another Tk10,000 crore in refinance fund to support the banks with liquidity to implement the Tk20,000 crore in stimulus package.

In the circular, the Bangladesh Bank mentioned that it would grant refinance to the banks against the outstanding principle loan, at the end of immediately preceding month, that the bank issued to its clients.

Banks will have to return the refinance loans in quarterly instalments and the central bank will deduct the amount from the banks' current accounts with the Bangladesh Bank.