State-owned investment company Investment Corporation of Bangladesh (ICB) received a loan of Tk 3,000 crore from Bangladesh Bank to increase its investment capacity in the stock market. The guarantor of this loan is the government.

On Wednesday (November 13), a recommendation in this regard from the Finance Department of the Ministry of Finance has been sent to the Governor of Bangladesh Bank. It was signed on behalf of the Government of Bangladesh by Additional Secretary Dr. Mohammad Abu Yusuf.

It said that the Investment Corporation of Bangladesh (ICB) will invest in the proposed loan to stabilize the capital market and increase its own financial capacity by repaying the funds received at high interest rates. The Finance Department of the Ministry of Finance is giving an assurance that if Bangladesh Bank is unable to pay Tk 3,000 crore loan and/or unearned/charged interest on the loan or any part thereof (principal and interest) to the Investment Corporation of Bangladesh (ICB), the Govt. It will be paid in due course.

However, the interest charged on outstanding or overdue loans or credits cannot be adjusted from the profits payable to the Government by Bangladesh Bank. The letter also informed that the term of this guarantee will be valid for 18 (eighteen) months from the date of issue.