Bangladesh Bank has announced a massive Tk 60,000 crore refinancing and support package aimed at reviving closed industries, accelerating new investments, and boosting employment across the country. The central bank expects the initiative to generate more than 2.5 million jobs if fully implemented.
The announcement was made on Saturday during a press briefing at Bangladesh Bank headquarters by Governor Moshtaqur Rahman.
The governor said Bangladesh’s economic growth has slowed significantly in recent years. GDP growth, which previously stood at 5.8 percent, later declined to 4.2 percent and is now projected to fall further to around 3.7 percent. At the same time, key sectors including ready-made garments, textiles, steel, ceramics, information technology, and manufacturing are facing mounting pressure.
Rahman noted that the banking sector is also under strain due to rising non-performing loans, incidents of money laundering, and declining public confidence among depositors. He added that high lending rates have discouraged small and medium-sized entrepreneurs from expanding their businesses.
“In this situation, the central bank has formed this special fund to revitalize the economy and reopen closed industrial units,” he said.
Under the newly announced package, Tk 41,000 crore will be disbursed through refinancing schemes, while the remaining Tk 19,000 crore will be distributed through Bangladesh Bank’s own support programs.
Of the refinancing allocation, Tk 20,000 crore has been earmarked for closed industries and service-sector businesses, Tk 5,000 crore for CMSMEs, Tk 10,000 crore for agriculture and rural economic activities, Tk 3,000 crore for export diversification, and another Tk 3,000 crore to help transform northern Bangladesh into an agricultural hub.
Meanwhile, the central bank’s Tk 19,000 crore support fund includes Tk 5,000 crore for pre-shipment credit refinance, Tk 5,000 crore for cottage, micro, and small entrepreneurs, and Tk 2,000 crore for the leather and leather goods sector.
Additional allocations include Tk 1,000 crore for unemployed youth employment programs, Tk 1,000 crore for rural economic activities, Tk 2,000 crore for frozen fish and fish exports, Tk 1,000 crore for environmentally friendly or green investments, Tk 1,000 crore for overseas employment, Tk 500 crore for startups, and Tk 500 crore for the creative economy sector.
The governor said the Tk 500 crore allocated for the creative economy will be provided as grants from corporate social responsibility (CSR) funds rather than loans.
Bangladesh Bank believes the package will help restart industrial production, expand exports, strengthen rural economic activities, and increase remittance inflows. Officials also expect the overseas employment fund to create job opportunities for nearly 100,000 people abroad.
Loans for unemployed youth will be distributed through Employment Bank, while financing for rural economic activities will be provided through Ansar-VDP Bank, benefiting thousands of Ansar and VDP members across the country.
Regarding lending rates, the governor said Bangladesh Bank will provide funds to banks at an interest rate of 4 percent under the refinancing schemes. Commercial banks will be allowed to charge a maximum spread of 3 percent, enabling large borrowers to access loans at around 7 percent interest.
However, he noted that interest rates for smaller loans could be slightly higher because of higher operational costs, particularly for small entrepreneurs and employment-based financing programs.
Bangladesh Bank expressed optimism that the initiative would help revive shuttered factories, increase exports and remittances, energize the rural economy, and restore momentum to the country’s overall economic growth.
