Dhaka, Bangladesh (BBN)- Central bank of Bangladesh has added BDT 570 million more to its refinancing fund for housing loan to settle the claims of the eligible clients, officials said.

“We’ve raised the amount under the refinancing fund aiming to help the clients through settlement of their due claims,” an executive director of the Bangladesh Bank (BB) said, adding that the BB’s board of directors approved the additional allocation in a meeting held at the central bank Thursday with governor Atiur Rahman in the chair.

The additional allocation came against the backdrop of suspension of loan disbursement under the refinancing fund since May 1 this year by the central bank to curb inflationary pressures on the economy.

The BDT 7.0 billion fund has almost been exhausted as the central bank has disbursed housing loans worth BDT 6.84 billion through the commercial banks and non-banking financial institutions (NBFIs).

Prior to the suspension, the central bank paid 30 per cent of required loans under the refinancing fund in the month of April while the rest 70 per cent was provided to the clients by the banks and financial institutions concerned.

“We had received around 600 requests for such loans only in April last. But we did not fulfill their demands mainly due to the lack of fund under the refinancing scheme,” a BB senior official said.

The fund was formed in July 18, 2007 with an initial allocation of BDT 3.0 billion to be disbursed over a period of three years to meet one of the basic needs of the people.

BBN/SI/AD-23Oct10-12:24 am (BST)