Bangladesh Bank has signed agreements with 17 banks to mobilise Tk 41,000 crore under its Tk 60,000-crore incentive package aimed at reopening long-shuttered industrial units, boosting private-sector investment and reviving economic activity.

The central bank announced the development on Thursday (August 27).

The participating banks are Sonali Bank, Agrani Bank, Rupali Bank, BRAC Bank, City Bank, Jamuna Bank, Dutch-Bangla Bank, Mutual Trust Bank, Uttara Bank, Prime Bank, Bank Asia, NCC Bank, Pubali Bank, Eastern Bank, Mercantile Bank, Trust Bank and Southeast Bank.

Bangladesh Bank announced the Tk 60,000-crore package on May 23 to revive closed industries, encourage private investment and restore momentum to the economy. Of the total fund, Tk 41,000 crore will come from commercial banks, while the remaining Tk 19,000 crore will be provided by Bangladesh Bank from its own resources.

The largest allocation, Tk 20,000 crore, has been earmarked for reopening industries that have remained closed for a long time. Loans from this fund are expected to be offered to private-sector entrepreneurs at an average interest rate of 7.5%.

At a briefing following the announcement of the package, Bangladesh Bank Governor Md Mostaqur Rahman described the initiative as a “production and employment recovery” programme. The central bank expects the programme to create around 2.5 million new jobs.

Bangladesh Bank expects the revival of closed and inactive industrial units to generate employment, increase private investment and help overcome the prolonged economic slowdown.