Tk 1 bn refinancing jute fund

Bangladesh Bank is set to create a Tk 1 billion refinancing fund for jute traders.

The fund aimed at developing the jute sector so that the farmers get fair price of jute, the central bank’s deputy governor SK Sur Chowdhury said at a press conference on Wednesday.

A committee has been formed with the representatives of the finance ministry’s Bank and Financial Institutions Division, jute and textile ministry and Bangladesh Bank.

Sur Chowdhury is the head of the committee and the Bangladesh Bank’s executive director SM Moniruzzaman is the member secretary.

Sur Chowdhury said, “The committee has been formed following recommendations from the ministries of finance and jute and textile for creation of a Tk 2 billion-fund. But considering the overall situation, the committee has decided to set up a Tk 1 billion fund.”

The fund will be utilised in giving loans to raw jute traders, wholesalers and jute mill owners.

Decisions on terms and conditions for obtaining loans will be taken after Eid, Sur Chowdhury said.

The central bank would give the fund to the commercial banks at five percent interest rate. Then it will recommend that the banks offer the jute traders the loan at nine percent interest rate.

The central bank’s existing refinancing funds are available for sectors like SME, renewable fuel and farming and women entrepreneurs.