BB clarifies policy on refinance facility

The central bank has clarified its policy to ease the process of receiving refinance facility by the banks and non-banking financial institutions (NBFIs) under the large industries and services sector, officials said.

The tenure of the refinance facility under the package will be three years from August 04, 2020 to August 03, 2023, according to a clarification issued by the Bangladesh Bank (BB) on Thursday.

The refinance facility will be provided on the basis of the principal amount of the working capital loan, it added.

The BB will collect installments on quarterly basis from the banks and NBFIs, which will receive the refinance facility from the central bank.

On April 23, the central bank formed a new refinance scheme worth Tk 150 billion for the large industries and services sector affected by the Covid-19 pandemic.