Hasina announces Tk 20bn in interest subsidy for banks in pandemic

  • Staff Correspondent, bdnews24.com
    Published: 2020-05-31 14:48:57 BdST

bdnews24

Prime Minister Sheikh Hasina has announced a Tk 20 billion fund for banks to subsidise the interest on loans issued to businesses hit by the coronavirus pandemic.

Bangladesh reopened its economy on Sunday after a two-month virus lockdown.

The prime minster announced the incentive package during a video conference on Sunday from her official residence Ganabhaban in Dhaka.

The government had promised to provide assistance to the businesses to lessen the burden of interest payment, as the economy was stalled over the past months, said Hasina.

Now, the government has decided to approve the fund, Hasina said.

This is the 19th incentive package designed in discussion with the finance minister, the finance secretary and the Bangladesh Bank governor, Hasina said.

Under the new stimulus package, the government will pay Tk 20 billion to the banks to reduce the borrowers’ interest burden that amounted to Tk 165.49 billion in the past two months.

The borrowers will be exempted from paying a prorated amount of the interest, but will have to pay the rest in 12 monthly instalments.

At least 13.8 million borrowers will benefit from the incentive package, as their businesses were halted over the past month due to the pandemic, said Hasina.

Bangladesh’s social protection and economic stimulus package rose to Tk 1.03 trillion, or 3.7% of the country’s GDP.