Tk 60,000 crore stimulus announced to revive closed factories, create jobs

Bangladesh Bank Governor Md Mostakur Rahman has announced a Tk 60,000 crore stimulus package to revive closed factories, boost agricultural production and provide working capital loans.

The governor made the announcement at a press conference at the central bank's conference room on Saturday, May 23.

Commercial banks will disburse Tk 41,000 crore from their own funds, while the central bank will refinance the remaining Tk 19,000 crore, Mostakur said. The government will provide a 6 per cent interest subsidy for both facilities. The target is to create employment for 2.5 million people.

The governor noted that the banking sector is going through various challenges. Approximately Tk 5 lakh crore has been stolen from the sector, he said. "Politely, this is called 'defaulted loan', but in reality it is not default. In most cases, there is no collateral or proper documentation against these loans. The stolen money has been laundered abroad. Recovering this money will take time, but the government is giving it the highest priority."

The primary goal is to boost productivity to increase employment, GDP growth and exports, and revitalise business and trade.