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Incentive for big industries reaches to Tk 40,000 crore

Another incentive of Tk 7,000 crore has been announced recently by Bangladesh Bank for the big industries. Total incentives for the big industries have reached now Tk 40,000 crore.

A statement was issued by the Banking Regulations and Policy Division of the Central Bank that the Prime Minister would be provided a low-interest loan facility to revive the country’s economic activities, keep workers employed and keep entrepreneurs competitive.

BD-gives-Tk-40,000-crore-Incentive
Figure: Incentives so far and its facilities for big industries.

Under this, a package of Tk 30,000 crore was announced to provide loan facilities as working capital for the institutions. Later, the financial assistance package of Tk 30,000 crore was increased by Tk 3,000 crore to Tk 33,000 crore to pay salaries and allowances to workers and employees working in export-oriented industries. The package has been increased by another Tk 7,000 crore to Tk 40,000 crore.

Under the package, the Bangladesh Economic Zone Authority (BEZA), Bangladesh Export Processing Zones Authority (BEPZA) and Bangladesh Hi-Tech Park Authority have spent Tk 6,000 crore and that will be applicable for providing loan facility as capital.

Under this, a package of Tk 30,000 crore was announced to provide loan facilities as working capital for the institutions. Later, the financial assistance package of Tk 30,000 crore was increased by Tk 3,000 crore to Tk 33,000 crore to pay salaries and allowances to workers and employees working in export-oriented industries. The package has been increased by another Tk 7,000 crore to Tk 40,000 crore.

The interest rate on the loan will be 9 percent, of which the government will provide a 4.50 percent subsidy.  In this case, the conditions of BRPD Circular No. 08/2020, BRPD Circular Letter No. 50/2020 and A-related circular letter will be followed.

The central bank has asked the commercial banks to send all the information to the banking regulations and policy department by 4 pm on November 5 to ensure the smooth functioning of the loan facility as working capital from the extended facility.

Most of the Rs 33,000 crore incentive package announced for large industrial and service sectors has already been disbursed. The interest rate on incentive money disbursed by the country’s scheduled banks has been fixed at 9 percent due to the schedule.

The government will pay four and a half percent of this interest. The remaining four and a half percent has to be paid to the recipient. The money received from the incentive fund can be used as working capital of the company.

If anyone has any feedback or input regarding the published news, please contact: info@textiletoday.com.bd

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