BB prods banks over stimulus

The central bank has asked the commercial banks to take effective measures to implement the government-announced stimulus packages immediately to help revamp the country's overall economic activities.

The advice was given at a meeting of the bankers online on Wednesday with Bangladesh Bank (BB) Governor Fazle Kabir in the chair.

"We've advised the bankers to implement the stimulus packages as early as possible for revamping the country's overall economic activities," the central bank's spokesperson Serajul Islam told the FT.

Mr. Islam, an executive director of the central bank, said the BB assured the bankers of all-out support for implementation of the packages.

"We're ready to disburse funds from our refinancing schemes to help the banks in implementation of the packages," he explained.

Prime Minister Sheikh Hasina has so far announced a total of 19 stimulus packages worth Tk 1.03 trillion to offset the shock of the novel coronavirus (Covid-19) pandemic on various sectors of the country.

The packages, which are 3.7 per cent of the country's gross domestic product (GDP), will be implemented under the supervision of the central bank and the ministry of finance.

"We've discussed different issues relating to the implementation of the packages at the meeting," a senior chief executive officer of a leading private commercial bank (PCB) told the FT.

The bankers, at the meeting, also discussed interest rate and liquidity situation in the banking sector, he added.

Most of the bankers are now working to provide loans under different stimulus packages, announced by the government and the central bank to help the business community amid the pandemic, according to the private banker.