Bangladesh Bank has announced a Tk 60,000 crore stimulus package aimed at reviving closed factories, boosting agricultural production, and supporting businesses with working capital loans.
Under the package, commercial banks will provide Tk 41,000 crore from their own funds, while Bangladesh Bank will refinance Tk 19,000 crore. The government will subsidize 6 percent interest in both cases.
Governor Mostakur Rahman announced the package at a press conference at Bangladesh Bank headquarters on Saturday. He said the initiative is expected to help create employment for around 2.5 million people.
The governor said the banking sector is facing major challenges due to large-scale loan irregularities and money laundering. He alleged that nearly Tk 5 lakh crore had been siphoned from the banking system through defaulted loans lacking proper collateral and documentation. Recovering the money will take time, though the government has given the issue top priority, he added.
“Our goal is to increase employment, raise GDP growth, expand exports, and revive business and trade by increasing productivity,” the governor said.
Of the Tk 41,000 crore to be distributed through commercial banks:
Bangladesh Bank will provide the Tk 19,000 crore refinancing fund to banks at 4 percent interest. The funds will then be disbursed to customers through commercial banks.
The refinancing package includes:
