Rules for Tk 3,000cr stimulus package for marginal farmers relaxed

The Bangladesh Bank today relaxed rules for its Tk 3,000 crore stimulus package dedicated to the low-income professionals, marginal farmers and micro-enterprises.

The latest initiative will encourage banks to disburse fund that subsequently helps the low-income groups to get fund efficiently, a central bank official said.

The stimulus fund is now being implemented through banks via microfinance institutions (MFIs) in order to salvage the pandemic-hit clients.

As per the new rules, banks will avail fund from the central bank at 0.5 per cent interest rate in contrast to the previous 1 per cent.

MFIs will get the fund at 3 per cent interest rate against the previous 3.50 per cent, according to a BB notice.

This means both banks and NBFIs would feel comfort to disburse the fund from the package.

The central bank had earlier said that banks could disburse the fund only through the MFI channel.

But, the latest BB notice said that bank would also be able to disburse the fund directly to their clients.

In such a situation, borrowers can get the fund at 7 per cent interest.

In April last year, the BB unveiled the refinance scheme, which is a revolving fund for three years, for the marginal people to keep them afloat amid coronavirus pandemic.

Banks have so far disbursed around Tk 2,300 crore under the programme.

The new rules have also allowed a bank to disburse fund through five MFIs against the previous maximum number of three.