Tk 62,000 crore stimulus package comes to support private sector: BB Governor

Photo - Collected

Bangladesh Bank Governor Md. Mostaqur Rahman announced a Tk 62,000 crore stimulus package to support the private sector and ease the burden of high borrowing costs.

Speaking at an exchange meeting in Rajshahi on Friday, Mostaqur said entrepreneurs were struggling to operate with bank lending rates ranging from 12% to 14%.

The package includes low-interest financing under several incentive schemes aimed at supporting businesses, he said.

The meeting at the auditorium of the Primary Teachers' Training Institute in Veripara was organised to discuss implementation of the Bangladesh Bank package. Business leaders, chamber representatives, government officials and bank executives attended.

Bangladesh Bank's Rajshahi office Executive Director Muhammad Badiuzzaman Didar chaired the meeting. The divisional commissioner and deputy commissioner of Rajshahi were also present.

Mostaqur Rahman said Bangladesh Bank was also planning a scheme called "Uddyog" to encourage young entrepreneurs. Under the pilot programme, 10 young people from each upazila will be selected, with a target of creating 5,000 entrepreneurs nationwide.

The scheme is scheduled to begin in November, he said.

The governor also outlined measures to expand access to agricultural credit. Under a Tk 10,000 crore refinancing scheme, alternative forms of collateral will be allowed instead of requiring land or other immovable property, making financing more accessible to small and marginal farmers.

He also highlighted a Tk 3,000 crore refinancing scheme aimed at supporting agriculture in northern Bangladesh.

The financing is intended to strengthen the agricultural value chain from production and storage to marketing, processing and exports, Mostaqur said.