B Mirror Report: Bangladesh Bank is set to establish a special fund aimed at reopening closed industrial units by providing low-interest loans to entrepreneurs, according to central bank and commercial bank sources.

Under the initiative, entrepreneurs will be able to access affordable financing to use as working capital for restarting operations. However, only factories with confirmed purchase orders and strong market demand for their products will be eligible for the support.

To facilitate the plan, the central bank has asked commercial banks to submit lists of closed factories along with updated loan information. The lists will include both fully and partially closed factories with outstanding loans exceeding Tk 100 crore, along with details of their loan history and current status.

Sources said Bangladesh Bank has already begun drafting a comprehensive policy framework for the fund. A meeting with managing directors of several banks has been scheduled for Sunday to discuss eligibility criteria, financing mechanisms, and necessary support measures.

The initiative primarily targets factories with viable market prospects. For those classified as loan defaulters, Bangladesh Bank is expected to offer flexible loan restructuring options before granting access to the fund.

Prime Minister Tarek Rahman is expected to formally announce the fund later this week. Speaking at a May Day rally on Friday, he emphasized the government’s commitment to protecting workers’ rights and strengthening the economy by reopening closed industries.

Discussions are ongoing on whether the fund will be financed through Bangladesh Bank or government resources. Officials noted that funding it through the central bank may require printing additional money, which could fuel inflation. As a result, forming the fund with government financing is being given priority.

Bangladesh Bank spokesperson Arif Hossain Khan said the central bank is currently collecting data from banks and consulting with the government on the type of support needed. “A final decision on the fund and its policy will be made after discussions are completed,” he said, adding that inflation concerns make government funding more likely.

Officials also noted that strict oversight mechanisms will be introduced to prevent misuse of funds. Companies involved in financial irregularities or money laundering will be excluded from the support.

Bangladesh Bank sources recalled that during the COVID-19 pandemic in 2020, the government introduced 23 stimulus packages totaling Tk 1.28 trillion to support the economy, much of which was financed through newly printed money. A significant portion of those loans has since turned non-performing.

Experts within the central bank stressed that, alongside loan restructuring, factories will need support in opening letters of credit to import raw materials. Ensuring transparency and preventing corruption will remain a key focus as the initiative moves forward.