Dhaka [Bangladesh], May 23 : The central bank of Bangladesh, known as Bangladesh Bank (BB), announced a fund of 60,000 crore taka (USD 4.9 billion) as a stimulus package to restart the various closed factories in the country.
Bangladesh Bank's governor, Md Mostaqur Rahman, announced this at a press conference on Saturday. He expressed hope that this fund would create 2.5 million jobs.
The package has two components, which includes Tk 41,000 crore refinancing fund, sourced from banks with excess liquidity through long-term deposits of at least three years at a 10 per cent interest rate, and a Tk 19,000 crore fund drawn from Bangladesh Bank's own resources, subject to a government guarantee, the Daily Star reported.
Under the refinancing fund, the largest allocation -- Tk 20,000 crore -- has been earmarked for closed factories, followed by Tk 10,000 crore for agricultural and rural activities, Tk 5,000 crore for the cottage, micro, small, and medium enterprise (CMSME) sector, and Tk 3,000 crore each for export diversification and the North Bengal Agricultural Hub, the report said.
The central bank's own fund covers 10 targeted schemes, including pre-shipment credit refinancing, financing for cottage and micro entrepreneurs, overseas employment, and startups.
Bangladesh's economy has been under pressure over the past two years due to persistent dollar shortages and elevated import bills following global commodity price volatility and geopolitical tensions. The country has also been dealing with declining foreign exchange reserves and pressure on the taka currency.
The manufacturing sector, especially the ready-made garment industry, which contributes the bulk of Bangladesh's export earnings, has faced challenges from slowing global demand, energy shortages and rising production costs.