Bangladesh Bank (BB) will launch a refinancing scheme worth Tk200 crore today for the country’s jute sector. 

In this perspective, it will sign partnership agreements with 16 banks to support jute sector under the refinancing  scheme.

The central bank governor Atiur Rahman will attend at the function along with high officials and managing directors of 16 banks. 

Earlier on October last year, Bangladesh Bank had announced a refinancing scheme for the jute sector in response to a request made by three ministries finance, jute and agriculture. 

A committee headed by SK Sur Chowdhury was formed to administer the scheme. The central bank will provide the refinance fund at the bank rate while the banks will disburse the loans and charge service fees. The committee will fix the maximum range of service charge for the banks. 

The country’s jute sector now suffers from fund crunch as high interest rates discourage the jute traders to borrow money from the banks.