Finance Ministry reveals guideline for Tk5,000cr stimulus package

NEWS DESK 

The Ministry of Finance has revealed the guideline for disbursement of the Taka 5,000 crore stimulus package for the export-oriented industries announced earlier by Prime Minister Sheikh Hasina to help those overcoming the impact of the global coronavirus pandemic.

Officials at the Finance Ministry said that the affected industries can avail funds from the package at 2 percent interest to pay their workers' salaries for up to three months. The salaries must be paid to either a bank or mobile financial service account.

They said those industries which usually exports at least 80 percent of their overall production would be able to avail this fund.

The owners or management of those industries could take loan from that fund and thus could disburse the salaries of their employees and workers for the three months (April, May and June of this year).

The Bangladesh Bank has already been asked to frame a detailed policy in this regard. The Ministry of Finance will form a Taka 5,000 crore bond against the central bank while the central bank will then form a Taka 5,000 crore refinancing fund from which the affected exporters would be able to take loans through the banks.

The officials said owners and management of the export-oriented companies or factories would have to provide salary sheets and workers' list and their mobile banking accounts to banks so that salaries for this month (April) can be directly disbursed.

The banks, afterwards, will forward the same documents to Bangladesh Bank for reimbursement.

The borrowers will get a six-month grace period, meaning that they will start paying back the borrowed money in installments to the government from the seventh month of receiving the money. The loan amount is likely to be repaid in two years.

Earlier on March 25 at her address before the nation, Prime Minister Sheikh Hasina announced a stimulus package of Taka 5,000 crore for export-oriented industries to fight the impact of coronavirus on the country's economy.

The premier then also said the money from the package could only be disbursed in the form of salaries and wages for employees and workers of the industries.