Dhaka, Bangladesh (BBN) – The central bank of Bangladesh has declined a proposal put forward by the realtors for resumption of refinancing scheme for the housing sector on the ground of possible rise in inflation.
The refusal came at a meeting with a six-member delegation of the Real Estate and Housing Association of Bangladesh (REHAB) held at the central bank on Monday with Bangladesh Governor (BB) Governor Atiur Rahman in the chair.
“Revival of the refinancing scheme for the housing sector is not possible right now, because it contradicts the ongoing monetary policy,” Deputy Governor of BB SK Sur Chowdhury told reporters after the meeting.
Earlier on January 31, the BB unveiled a monetary policy statement (MPS) for the January-June period of the current fiscal year (FY) 2012-13 aiming to attain maximum economic growth through ensuing sufficient credit flow for productive sectors and bring down inflation to 7.5% by the ongoing fiscal year.
BB Deputy Governor also said the central bank might take initiatives to resume the refinancing scheme after announcing the next monetary policy if the inflation came down to a tolerable level.
“We’ve requested the BB Governor to resume the refinancing scheme for the housing sector, which has remained suspended since 2011, to facilitate the sector,” Secretary General of REHAB Wahiduzzaman told the reports.
He also said the REHAB also proposed to form a special refinancing scheme for the housing sector worth BDT 15 billion for the lower income group. “Interested people will get loan for purchasing apartments or construct houses with single-digit interest rates if the special refinancing scheme is formed.”
On July 18, 2007, the central bank formed the BDT 3.0 billion fund initially for disbursement over a period of three years.
BBN/SSR/AD-20May13-9:07 pm (BST)