Published:  12:21 AM, 12 September 2017

BB's refinancing fund for jute gets huge response

BB's refinancing fund for jute gets huge response

The refinancing scheme of Bangladesh Bank (BB) for jute sector has drawn a huge response from borrowers as banks have already disbursed Tk 343.22 crore revolving loan since its launch in June 2014. BB launched the refinancing scheme with a fund of Tk 200 crore in 2014 to support jute sector for bringing back its glorious past. Eighteen private and public commercial banks were nominated for channeling the fund to the public and private jute mills, raw jute traders and exporters.

The banks are Sonali Bank, Rupali Bank, Agrani Bank, Janata Bank, Basic Bank, United Commercial Bank Limited (UCBL), IFIC Bank, National Bank, Prime Bank, AB Bank, Mercantile Bank, Uttara Bank, Bank Asia, Standard Bank, One Bank, The City Bank, NRBC Bank and Rajshahi Krishi Unnayan Bank (RAKUB).

"Of the allocated fund, the banks initially disbursed Tk 175.23 crore. But the amount of disbursement has increased to Tk 343.22 crore due to huge demand from borrowers," said an official of BB, reports BSS. He said the central bank allocated Tk 77.63 crore for public jute mills, Tk 93.67 crore for private jute mills and Tk 28.70 crore for raw jute traders and exporters at 5 percent interest rate to the banks.

"The banks initially disbursed Tk 70.83 crore to the public jute mills, Tk 84.50 crore to the private jute mills and Tk 19.90 crore to the jute mills and raw jute traders and exporters," he added.  The BB official said the banks recovered Tk 237 crore and the present balance of the scheme is Tk 93.85 crore.  He also said major part of the fund was received by private jute mills across the country.

Among the banks, Janata Bank disbursed the highest Tk 107.21 crore, the BB official added. Under the BB's scheme, he said, banks are allowed to charge 9.0 percent interest rate for the raw jute purchasing purpose.

Banks can provide loan to the jute mills and exporters for one year to purchases jute from farmers subject to repayment or adjustment of each quarterly interest and real amount. The loan can be yearly renewed in the five years tenure subject to repayment or adjustment of principal and interest amount in every year.

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