The Investment Corporation of Bangladesh (ICB) is positive about getting a sovereign guarantee from the government for a Tk 3,000-crore fund so that the country's lone state-run investment bank can revitalise itself and continue supporting the stock market.

A sovereign guarantee is a government assurance to investors that debt repayment will be fulfilled. If the state-run non-bank financial institution secures the guarantee, it can obtain a loan of the equivalent amount from the Bangladesh Bank or other lenders.

At a meeting on Thursday at the finance ministry, officials discussed the ICB's urgent need for funds.

The ministry is almost convinced, said a top finance official after the meeting, asking not to be named.

"The ministry is working to provide a sovereign guarantee for the ICB," the official added.

Meanwhile, ICB Chairman Prof Abu Ahmed also sounded positive about getting the government guarantee.

"We hope ICB will receive the funds," Ahmed said.

The government has realised the state-run NBFI's need for funds to fulfil its role, he added when asked about the topic yesterday.

Despite the Dhaka Stock Exchange (DSE) benchmark index's brief rise after the political changeover in August, the DSEX has dropped by around 5 percent in the past two months.

A top ICB official said that the funds would be used to repay debts to other banks and support the stock market. The NBFI's previous misuse of funds for low-performing and speculative stocks is now prevented by a proper investment policy.

With the funds, the ICB is expected to rebound, the official said.

The ministry will submit a resolution regarding the sovereign guarantee to the finance advisor, who will make the final decision and instruct the ministry to proceed with the guarantee.

The ICB previously sought a Tk 5,000 crore fund during the Awami League government to recover. While the ministry discussed providing the funds multiple times, the process was halted amid the nationwide student movement last July.