No fresh refinance scheme loan for shipbuilders with overdue export bills: BB
Banks will disburse loans under the scheme at the customer level in a minimum of three phases instead of disbursing them in one go
Existing customers who have their previous export proceeds overdue will not be entitled to get new loans from the Tk2,000 crore refinancing scheme created for the shipbuilding industry.
At the same time, the refinancing facility will not be applicable in the case of loans disbursed in this sector previously, says a Bangladesh Bank circular issued to the managing directors of all banks on Wednesday.
Besides, customers will not be allowed to repay other loans by borrowing money under this scheme, it adds.
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According to the circular, scheduled banks will enter into a participation agreement with the Bangladesh Bank for refinancing in the sector. But, the banks could apply for refinancing by 30 June 2024.
Banks will disburse loans under the scheme at the customer level in a minimum of three phases instead of disbursing them in one go. At the same time, banks will keep margins as per their own policy while giving working capital loans under the scheme.
On 26 May this year, the Bangladesh Bank formed the refinancing scheme to provide entrepreneurs in the shipbuilding industry with low-interest loans for the development of the sector and reduce the country's import dependence.
Under the scheme, a customer can get loans at 4.5% interest. A customer can get term loans for a maximum of 12 years, for which the grace period will be of three years.
At the bank level, the interest rate will be 1%. But, the Bangladesh Bank has asked lenders to provide the necessary information for lending to customers by 30 January 2024.
Under this scheme, banks will be able to disburse loans or invest in working capital for a period of one year. If the business transaction is satisfactory, it can be renewed. However, through renewal, any customer will get this facility for a maximum of three years.
At present, there are 120 shipyards in the country, which employ about 30,000 people. In the next five years, the number of jobs in the sector is expected to increase to more than 100,000.
