The booming shipbuilding industry may get a Tk 200 crore refinancing fund, as the Bangladesh Bank (BB) will review the scheme tomorrow at its board meeting.

The central bank is keen to start funding the industry under the scheme, said an official of the central bank yesterday.

The BB earlier sanctioned the fund to give a further boost to the sector, which is considered to be the country's second largest export industry after readymade garment.

Once approved, shipbuilders will get loan at a 10 percent interest rate. The other criteria of the scheme will be disclosed elaborately after the finance ministry's approval, the BB official added.

Industry insiders said the much expected refinancing is being delayed due to an apprehension that such funding may influence the rising inflation.

But people from the banking sector, dismissing the fear, said the fund is too small to impact inflation.

High financing cost is the only bottleneck in the growing industry, said Abdullahhel Bari, president of Association of Export Oriented Shipbuilding Industries of Bangladesh.

Source: The Daily Star