DHAKA: Sixteen commercial banks have entered into agreements with the Bangladesh Bank (BB) to provide low interest credits to the jute sector from the central bank’s newly formed Tk 200 crore refinancing scheme, reports AFP.
Deputy Governor SK Sur Chowdhury attended the agreement signing ceremony as the chief guest. Executive director Md Moniruzzaman and general manager of Agricultural Credit and Financial Inclusions Department Provash Chandra Mallik and chief executives of 16 commercial banks were present at the ceremony.
SK Sur Chowdhury said the central bank has formed the refinancing scheme to provide loans to all public-private jute mills, exporters and jute traders for the revival of the country’s jute sector. BB has signed agreements with the banks to release money from the fund because it is now high time for purchasing raw jute, he added.
“We hope that BB’s refinancing fund would play a role in ensuring fair price of jute,” he said, adding that the central bank has plans to enhance the size of this fund in future.
As per the agreement, the participatory banks will get fund from this refinancing scheme at 5 percent interest. Jute mills and jute traders involved in jute export will be able to take loans from banks at maximum 9 percent interest.
The participatory banks are Sonali, Agrani, Janata, Rupali, BASIC, UCBL, IFIC, National, Prime, AB Bank, Mercantile, Uttara, Bank Asia, Standard, One, Trust, Shahjalal and City Bank.