CORONAVIRUS: BANGLADESH GOVERNMENT ANNOUNCED A TOTAL OF 72,750 CRORE INCENTIVE PACKAGE FINANCIAL AID TO BUSINESS
To counter the potential economic loss in the country due to the outbreak of the Novel Coronavirus, Prime Minister Sheikh Hasina announced a total of 72,750 crore incentive packages under the five packages, which is 2.52 percent of GDP and it is named Bangladesh PM Unveils Incentive Package.
Bangladesh PM Unveils Taka 72,750 Crore Incentive Package
The following are the financial aid packages announced by the Honorable Prime Minister:
Package 1: To provide working capital facilities for the affected industries and service sector organizations, a loan facility of Tk 1,000 crore will be created to provide working capital in the short term through the bank system. On the basis of Bank-Client Relations, the working capital loan is given to the respective industries/businesses of the commercial banks from their own funds. The interest rate of this loan will be 9 percent. Half of the interest on the loan, ie, 4.5 percent will be paid by the borrower to the concerned bank and the remaining of the subsidy as of 4.5 percent will be paid by the government to the concerned bank. Package 2: Providing Working Capital Benefits to Small (Cottage Industries) and Medium Enterprises: A loan facility of Tk 20,000 crore will be created for the purpose of providing working capital in the short term through the bank system. On the basis of Bank-Client Relations, Commercial Banks will lend the working capital to concerning small and medium enterprises with their own funds.The interest rate of this loan will also be 9 percent. The loan will be paid to the concerned bank at 4 percent by the borrower of that industry and the remaining of the subsidy as of 5 percent will be paid by the government to the concerned bank. Package 3: Extending the Benefits of Bangladesh Bank-initiated Export Development Fund (EDF): Under the Block-to-Block ELC, the current size of the EDF will be increased from US $ 3.5 billion to US $ 5 billion to increase the import of raw materials. As a result, an additional 12 thousand 750 billion taka will be added to the EDF fund, equivalent to $ 1.5 billion. The current interest rate for the EDF will be reduced from LIBOR + 1.5 percent (which is actually 2.73 percent) to 2 percent.
Package 4: Pre-shipment Credit Refinance Scheme (Bangladesh Bank) will launch a new loan facility of Tk 1,000 crore. The interest rate of this loan will be 3 percent.
Package 5: The Prime Minister has already announced an emergency incentive package of Tk 5,000 crore to pay the salaries/allowances of workers and employees of export-oriented industries.
The total amount of financial assistance in the three packages, including the new 4, will be Tk 72,750 crore, which is about 2.52 percent of GDP.
Announcing these packages to boost the country’s economy in the wake of the epidemic spreading across the world, Prime Minister Sheikh Hasina said, “Hopefully, if the financial aid packages announced earlier and today are implemented quickly, our economy will revive and we will be able to reach near economic growth.” InshaAllah. ‘
Calling on all to increase the production and consumption of domestic products, the Prime Minister said, “To overcome this potential global and domestic economic crisis, we have to pay special attention to the export sector as well as the domestic product.” In this case, I call on all to increase the production and consumption of domestic products. ”
Commenting on all the hostility, Bangladeshi people are able to turn around and comment, Sheikh Hasina said, “People of Bangladesh have amazing tolerance ability and ability to move quickly through endurance. Responding to the call of the Father of the Nation Bangabandhu Sheikh Mujibur Rahman, the nation that took away independence in just nine months – will not be able to claim anything to the nation.
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