Dhaka, Bangladesh (BBN)- The central bank of Bangladesh is likely to release first installment of refinancing scheme fund for lenders of the stock market amounting Tk 3.0 billion Sunday to rejuvenate the country’s capital market.
“We’re now working on the issue,” SK Sur Chowdhury, deputy governor of the Bangladesh Bank (BB) told BBN, adding that “It’s a budgetary allocation of the government.”
The central bank on behalf of the government will transfer the fund to the state-run Investment Corporation of Bangladesh (ICB) account in line with the finance ministry’s advice, the deputy governor added.
Another BB official said the rest of two installments will be released in October 2013 and January 2014 respectively on the basis of no objection certificate, issued by the Bangladesh Securities and Exchange Commission (BSEC).
The BSEC and the ICB will implement the scheme in three phases, according to the BB deputy governor.
The central bank earlier proposed to the government to use its (BB's) Tk 9.0 billion profit as refinancing scheme for stock brokers to revamp the capital market.
The stock brokers have been asked to waive 50 per cent interest on merchant loan and other block loans at 10 per cent interest under the stimulus package that was announced after the debacle in stock market in December (2010)-January (2011).
BBN/SSR/AD-06July13-9:20 pm (BST)
