The government announced an incentive package of Tk 30,000 crore to banks to provide loans to companies in the industrial and service sectors affected by the COVID-19. Bangladesh Bank has set up a revolving refinancing fund to provide half of this loan that is Tk 15,000 crore. All the banks will give a total of Tk 28,865 crore and the non-bank financial institutions will distribute Tk 1,135 crore.

According to the central bank’s policy, the term of this loan will be three years. Industries that have already availed capital from the bank will be able to borrow up to a maximum of 30 percent from this fund. However, only the victims will get this loan. Debtors will not get any loan from this fund. Not only defaulters but also traders who have rescheduled loans more than three times won’t be able to get the loans.

The loans that have been given to be recovered from the COVID-19 pandemic, however, for such critical preconditions it is not working accordingly. Also, the ability of customers to repay the loan is much less than before. So, the bankers are being very careful in giving loans for this.

The loans will be distributed by several banks such as state-owned Agrani Bank which will be able to lend Tk 914 crore from this fund. The bank has already sanctioned a loan of Tk 19 crore in the name of Wata Chemical, which is listed on the stock exchange. Hundreds of companies including Jamuna Group, Thermax, Acme, Diamond Cement, PHP Group, Apex Footwear, City, Nital Niloy Group have applied for loans from the bank.