Tk 41,000 crore from 17 commercial banks to revive closed factories

Progress has been made in implementing the Bangladesh Bank's Tk 60,000 crore stimulus package aimed at reopening long-shuttered industrial units, expanding private investment, and revitalising the sluggish economy. Under this programme, agreements have been finalised to raise Tk 41,000 crore from 17 commercial banks.

The central bank provided this information on Thursday, August 27. The banks that have agreed to finance the incentive fund include state-owned Sonali, Agrani and Rupali banks, as well as private sector banks such as BRAC Bank, City Bank, Jamuna Bank, Dutch-Bangla Bank, Mutual Trust Bank, Uttara Bank, Prime Bank, Bank Asia, NCC Bank, Pubali Bank, Eastern Bank, Mercantile Bank, Trust Bank and Southeast Bank .

Earlier, on May 23, Bangladesh Bank announced this special stimulus programme of Tk 60,000 crore to revitalise economic activity. Of this, Tk 41,000 crore is being raised through the participation of commercial banks, while the remaining Tk 19,000 crore will be provided from the central bank's own funds .

The largest allocation under the programme, Tk 20,000 crore, has been set aside for reopening long-shuttered industrial units. The central bank plans to provide loans to private entrepreneurs from this fund at comparatively low interest rates, keeping the average lending rate around 7.5 percent.

Bangladesh Bank Governor Md Mostakur Rahman had earlier described the stimulus package as a "production and employment recovery" programme during a briefing announcing the initiative. According to central bank estimates, this initiative could create approximately 2.5 million new job opportunities and pave the way for fresh private investment as idle industrial units return to production.

Central bank officials believe that reopening long-closed factories will not only increase industrial output but also boost both employment and investment, helping to overcome the current economic stagnation and revitalise production and business activities. The Tk 60,000 crore fund is planned to be utilised with that goal in mind.