Brokerage firms need Tk1,000cr stimulus fund to survive

Saying brokerage houses are struggling like export-oriented firms, the Dhaka Stock Exchange (DSE) has sought Bangladesh Bank's help to get a stimulus fund for the pandemic-stricken brokerage houses to pay salary to their employees.

DSE leaders made the request on Tuesday at a courtesy meeting with Fazle Kabir on his reappointment as the central bank governor.

The brokerage firms have long been struggling to cope with the regular expenses due to the stock market closure during the countryside general holidays put in place to curb the spread of the novel coronavirus.   

DSE Chairman Md Eunusur Rahman, Managing Director Kazi Sanaul Haque, directors Brigadier General Mostafizur Rahman, Salma Nasreen and Shakil Rizvi were present at the meeting at the central bank headquarters in Motijheel, Dhaka.

The governor suggested the DSE leaders to uphold their needs to the government because the government itself takes the decision of forming stimulus funds, said Md Serajul Islam, spokesperson and executive director of the Bangladesh Bank.

Shakil Rizvi told The Business Standard, "Around 200 stockbrokers are actively trading now. We want a stimulus fund of Tk1,000 crore for them. They agreed to pay the interest at 4 percent against the loans."

On March 26, Prime Minister Sheikh Hasina declared a package of Tk5,000 crore stimulus fund for providing workers' wages in the export-oriented companies, which have been affected by the novel coronavirus.

From the fund, banks have provided loans at only 2 percent service charge to the affected factories for paying three months' salary to their workers.

Finally, the central bank has increased the fund to Tk7,500 crore as the amount could not meet the total need of the export sector.

Shakil Rizvi also said that they are trying to trade government securities at the stock market in collaboration with the central bank.

They are hopeful that, within two months, they will be able to start trading government bonds, he added.