B Mirror Report:  Bangladesh Bank has announced a Tk60,000 crore stimulus package aimed at reviving closed industrial units and accelerating economic recovery through increased production, exports, and employment generation.

The package was unveiled by Bangladesh Bank Governor Md Mostaqur Rahman during a press briefing at the central bank headquarters in Motijheel on Friday.

According to the governor, Tk41,000 crore of the package will be channelled through a refinancing scheme to support the reopening of shuttered factories, while the remaining Tk19,000 crore will come directly from Bangladesh Bank funds under various targeted programmes.

“At the customer level, the lending rate for large industries will be 7%, while smaller borrowers may face slightly higher rates,” the governor said.

The central bank expects the initiative to generate around 2.5 million direct and indirect jobs while helping restore momentum in the country’s industrial and export sectors.

Under the Tk41,000 crore refinancing component, funds will be sourced from commercial banks holding excess liquidity through long-term deposits of three years or more at an interest rate of 10%.

The allocation includes:

• Tk20,000 crore for closed industries and the service sector
• Tk10,000 crore for agricultural and rural activities
• Tk5,000 crore for the CMSME sector
• Tk3,000 crore for export diversification
• Tk3,000 crore for the North Bengal agricultural hub

In addition, Bangladesh Bank will provide Tk19,000 crore, subject to government guarantee support, for several specialised sectors and initiatives.

The allocations include:

• Tk5,000 crore for pre-shipment credit refinancing
• Tk5,000 crore for cottage and micro entrepreneurs
• Tk2,000 crore for leather goods and footwear exports
• Tk2,000 crore for frozen shrimp and fish exports
• Tk1,000 crore for youth employment
• Tk1,000 crore for rural economic activities
• Tk1,000 crore for green and eco-friendly projects
• Tk1,000 crore for overseas employment
• Tk500 crore for startup financing
• Tk500 crore for the creative economy

Bangladesh Bank said the package is designed to reopen closed factories, expand agricultural output, promote environmentally sustainable projects, strengthen rural economic activities, and encourage innovation and entrepreneurship.

The central bank also expects the programme to help increase remittance inflows by supporting overseas employment opportunities for skilled workers.

A senior Bangladesh Bank official said the facility would primarily target businesses that became financially distressed due to the impacts of the Covid-19 pandemic, the Russia-Ukraine conflict, and instability in the foreign exchange market.

Priority will be given to firms with confirmed export orders and strong market demand to ensure effective use of the funds, the official added.

Bangladesh Bank has already gathered information from banks and business associations on closed and partially operational factories across the country. Officials said more than 1,200 industrial units  including both large and small enterprises have so far been identified for potential support under the programme.