Bangladesh Bank announces Tk 600bn credit package to ‘revive economy’

The central bank chief is optimistic about the initiative creating more than 2.5 million jobs nationwide

Bangladesh Bank Governor Md Mostaqur Rahman has announced a Tk 600 billion credit package aimed at “reopening factories and stimulating economic activity”.

Out of the package, a Tk 410 billion “refinance” fund will be sourced from the excess liquidity available across commercial banks, while the central bank will provide the remaining Tk 190 billion.

Mostaqur detailed the core components of the credit package during a media briefing held at the central bank’s Jahangir Alam Auditorium on Saturday.

"Tk 400 billion will be channelled toward stimulating economic activities, while the remaining Tk 200 billion will be explicitly reserved for reviving closed factories," the governor explained.

The government will act as the guarantor for Tk 410 billion of the loan facility.

Mostaqur expressed optimism that the successful implementation of this financial initiative will generate more than 2.5 million jobs across the country.

The interest rates, detailed framework, and regulatory conditions of the package will be formally outlined in a circular to be issued later on Saturday, the governor added.

This press meet is the first since Mostaqur assumed office in February.