Tk 10cr loan for setting up new cinema

Bangladesh Bank yesterday said that entrepreneurs would get Tk 10 crore each to set up new cinemas under a refinancing scheme to the tune of Tk 1,000 crore.

Meanwhile, existing hall owners will be allowed to get Tk 5 crore each in order to renovate their theatres with the soft loans, according to a central bank notice.

It mentioned that the scheme was introduced in order to bring back the glory of Bangladeshi cinema by constructing modern cinemas and renovating the old ones.

Earlier in February, the central bank had issued a notice stating that it would provide a maximum of Tk 5 crore to set up new halls or renovating the existing ones.

However, it has since raised the ceiling to encourage businesses and entrepreneurs to set up new cinema halls, a Bangladesh Bank official said.

Cinemas having at least 100 seats will eligible for funds from the scheme, under which owners will get long-term loans at 5 per cent interest.

The repayment period will be eight years, including a one-year grace period, with a quarterly equal instalment payback facility.

Of the Tk 1,000 crore, Tk 500 crore will be distributed in the first phase while the remaining Tk 500 crore will be disbursed in the second phase.

Financing banks will take the fund from the central bank at 1.5 per cent interest and distribute the loans at 5 per cent interest in metropolitan areas and 4.5 per cent interest outside the metropolitan areas.