The Financial Institutions Department of the Ministry of Finance has directed the State Investment Corporation of Bangladesh (ICB) to take necessary measures to provide a sovereign guarantee of Tk 3,000 crore.

This order was given in a letter signed by Financial Institutions Department Deputy Secretary Farida Yasmin on Tuesday (November 5). A copy of the letter has been sent to the Managing Director of ICB and the Private Secretary of the Financial Institutions Department to take action in this regard.

It has been said that the Financial Institutions Department is requested to take necessary measures to provide a state guarantee for sanctioning and disbursing a loan of 3000 crore taka for the purpose of increasing the capacity of the institution and developing the capital market by the Investment Corporation of Bangladesh (ICB). A meeting was held in this regard on October 17 with the combination of Financial Institutions Department, Bangladesh Bank, Bangladesh Securities and Exchange Commission (BSEC) and ICB. In the meeting, it was recommended to ICB to take necessary measures to obtain the consent of the Finance Department for sanctioning a loan of Tk. 3000 (three thousand) crores from Bangladesh Bank. In that context, when the summary was presented to the finance advisor, he kindly approved the matter.

It is to be noted that earlier, if a letter was sent to Bangladesh Bank regarding the sanction and disbursement of a loan of 5000 (five thousand) crores in favor of ICB, Bangladesh Bank will consider the matter later as per Section 16(2) (d) of Bangladesh Bank Order, 1972, subject to the guarantee of Bangladesh Bank Government. He said that he would do it.

The letter also states that the related documents have been sent herewith as per the instructions for taking the next necessary measures regarding the granting of a state guarantee of 3000 (three thousand) crores from Bangladesh Bank to ICB.